Toronto is now cheaper than New York and Miami

Living in Toronto has many benefits: access to great shopping, restaurants, entertainment and sports teams. Pockets of beautiful green space. Variety and abundance of social activities. However, affordability? Unfortunately, this continues to decline.

Toronto is now cheaper than major US cities like New York and Miami, according to a new Zoocasa report. The real estate site analyzed affordability in 40 North American cities, comparing median home prices, median income and maximum affordability in each.

“While the U.S. and Canadian housing markets have been impacted by rising interest rates and low inventory, Canadian buyers will be particularly affected, especially those with lower average incomes and lower purchasing power,” the report said.

The difference between peak affordability and the median home price in Toronto, as of April 2024, was -$362,627. That puts The Six ahead of the Miami (-$342,413) and New York (-$316,215) markets.

Toronto was not the cheapest city to live in Canada. Read on for some highlights from the full report.

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What is the cheapest city in Canada?

According to Zookaza, living on the West Coast is much more expensive. It named Vancouver the most affordable city in Canada, with the difference between maximum affordability and the median home price at $543,656. However, VanCity was not the cheapest city.

Living in San Diego is also difficult, where the difference is $545,702. As for the cheapest city in North America? That honor goes to San Francisco, with a difference of -$644,338. However, the citizens there still seem to be doing well for themselves.

“Of all the cities we analyzed, San Francisco has the highest median income, meaning homebuyers have the highest purchasing power. Median-income households in San Francisco can afford a home worth about $612,162, the highest on our list and nearly double what median-income households in Vancouver and Toronto can afford,” the report said.

Los Angeles (-$416,444) and Boston (-$385,464) rounded out the list of the five cheapest cities. Toronto ranked sixth. Hamilton-Burlington, Ont. 10 has arrived^th (-$222,451), Kitchener-Waterloo, Ont. Came at 12^th (-$200,033), Montreal ranked 19th^th (-$135,255) and came to Ottawa 21st^Art (-$105,223) — two spots higher than Halifax-Dartmouth in 2018 (-$102,490)^rd place

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What is the most affordable city in Canada?

The Zoocasa report looked at only 12 Canadian destinations out of 40 North American cities it surveyed. However, there was a clear winner in the affordability space. Someone looking to live in Saint John, NB will experience a difference of +$81,411 between maximum affordability and the median home price.

Four other Canadian cities were also positive about the affordability gap. Saskatoon, SK (+$57,820), Edmonton (+$56,888), Winnipeg (+$43,516) and Calgary (+$23,522) were named Canada's most livable cities.

Wondering which city in America is the most affordable to live in? That would be Oklahoma City, which was priced at +$37,748.

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How does affordability in Canada compare to affordability in the US?

The Zoocasa report shows that Toronto's average income is comparable to Dallas. However, housing prices in Toronto are much more expensive, making it unaffordable to live in. The publication notes that this is not just a TO trend. Kitchener-Waterloo also has a comparable median income to Dallas, but is less affordable due to home prices.

This does not mean that Canada as a country is more expensive.

“Notably, five of the eight cities where middle-income earners can afford the median home price are in Canada: Calgary, Winnipeg, Edmonton, Saskatoon and Saint John,” the report continues.

“Calgary has the highest median household income in Canada at $64,444, giving home buyers enough to afford the median home price of $340,741. Edmonton is a more affordable model. With a median household income of $62,222, households can afford a home worth approximately $351,703, which is more than the median home price of $56,888.”