A new report on housing affordability across North America includes great news for Toronto residents who have always dreamed of moving to the U.S. 

While housing markets across North America have been affected by rising interest rates and low inventory over the past few years, Canadian buyers have been particularly affected thanks to smaller median incomes, according to a report by Zoocasa. 

Cost of living is on the rise across much of North America with median incomes inching up at a slower rate. Photo: Zoocasa.

In 2021, the median household in the U.S. was USD$75,149 and USD$54,074 ($73,000 CAD) in Canada, and the disparity between the two countries only becomes more apparent when one examines national average home prices. 

According to the report, the average home price in Canada was still $30,000 higher than the U.S. in 2022, even though Canadians had a median income that was $20,000 lower.

To compare the level of housing affordability in 40 cities across North America, Zoocasa analyzed median home prices, median incomes, and maximum affordability. 

Housing affordability in major U.S. and Canadian cities. Photo: Zoocasa.

The report found that major U.S. cities, including New York City, Miami, Nashville, Phoenix, Dallas, Houston, and Philadelphia, are all more affordable than Toronto when it comes to housing. 

Overall, San Francisco was found to have the most significant gap between the maximum affordability of median-income households and the median home price at a staggering difference of $644,338. 

"However, of all the cities we analyzed, San Francisco has the highest median income, meaning homebuyers have greater buying power. Median-income households in San Francisco can afford a home of around $612,162, by far the highest on our list and nearly double what median-income households can afford in Vancouver and Toronto," the report notes. 

Figures were based on January 2024 home prices, a 20 per cent down payment, and a 30-year mortgage at a fixed rate of 6.79 per cent (or 4.79 per cent for Canadian borrowers. Photo: Zoocasa.

Although Toronto's median income is comparable to Dallas, the real estate agency found that the median home price in Toronto is $718,519 versus just $393,650 in Dallas. 

"This results in a difference of just $107,093 between maximum affordability and the median home price in Dallas, while in Toronto, the gap more than triples that of Dallas," the report continues. 

"Households earning the median income in Toronto can afford homes costing around $355,892, which is $362,627 less than the median home price." 

Despite this, it's not all bad news for Canada, as median-income earners in Calgary, Winnipeg, Edmonton, Saskatoon, and Saint John can afford the current median home price in each respective city.