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The Increase of Home Prices to Median Household Income
Canadian house prices have increased substantially with those hoping to buy a house in 2024 will look to spend 8-9x the median household income. The home price to median income ratio has increased from 4.9x in 2005 based on household income of $48,829 and a home price of $241,000 to 8.5x median income in 2024. The median income for a household in 2024 is projected to be $84,635 based on 2022 median income of $80,500 adjusted for inflation. The house price is the HPI benchmark price which is the price of the typical home in Canada. The MLS HPI benchmark price is seen as a more stable price indicator when compared to the average or median prices. Through tracking the price of the "typical" home it excludes the extreme high-to-low end properties sold.
When purchasing a home in Canada it is important to know about the SC escape clause to make sure you have flexibility and protection on conditional property sales.
source: CREA, Statscan