While Toronto's housing crisis often dominates headlines, a new study reveals that Windsor and other Ontario cities are experiencing some of the most rapid declines in housing affordability across Canada.
Ontario Cities Face Sharpest Affordability Decline
According to recent research analyzing data from 2014 to 2023, multiple Ontario urban centers have seen housing costs surge dramatically faster than household incomes. Cities including Oshawa, Hamilton, Barrie, and the Kitchener-Cambridge-Waterloo region now rank among the 10 least affordable major cities in Canada out of 36 surveyed markets.
The study examined the relationship between local median after-tax family income and the costs associated with purchasing a typical home, whether single-detached, semi-detached, or condominium properties.
Staggering Financial Barriers for Families
The financial challenges facing prospective homeowners have become increasingly formidable over the past decade. In Brantford, a family earning the local median income in 2023 needed $136,880 for a 20% downpayment on a typical home—equivalent to 27.3 months of after-tax income.
This represents a dramatic increase from 2014, when the same downpayment required only $50,200 or 12.6 months of income.
Beyond the initial downpayment, monthly mortgage payments present another significant hurdle. For that same Brantford home in 2023, assuming a 20% downpayment and 25-year amortization, the monthly mortgage payment reached $3,517—consuming 70.1% of median after-tax family income.
This contrasts sharply with 2014, when the mortgage payment was just $1,065, representing only 26.7% of the family's after-tax income.
Windsor and Other Cities Follow Similar Pattern
The affordability crisis extends across multiple Ontario communities. In Windsor, Guelph, St. Catharines, Peterborough, and London, a 20% downpayment on a typical home now requires more than two years of the local median after-tax family income.
Furthermore, mortgage payments in these cities would consume over 60% of the annual after-tax income for families earning median wages. This financial burden makes typical homes simply inaccessible for many households without additional financial support from family or rental income from tenants.
The research highlights how housing affordability has deteriorated faster in Ontario's secondary cities than almost anywhere else in the country, creating significant challenges for families attempting to enter the housing market.
