Southwestern Ontario boasts some of the most affordable communities in the province when it comes to buying a home, a new analysis shows.
Three communities in the region made a Top 10 list compiled by realty website Zolo.ca ranking affordability in the real estate market. Three other communities in the London area landed just outside the Top 10 list.
“It’s an interesting study. I agree that for the most part, Southwestern Ontario is pretty affordable,” said Adam Miller, president of the London-St Thomas Association of Realtors.
He applauded the fact the study was not solely based on housing prices, but took economic conditions in the community into consideration as well. “We do talk about the lifestyle dream in this industry. A lot of time it’s focused on price. This crunches the numbers more.”
But the study didn’t include some critical factors for buyers and that includes parks, playing fields, community services, access to retail and restaurants or access to waterfront, he said.
The full list can be found here.
The ranking lists the following local communities among or just outside its top 10:
- Mount Forest, No. 5
- Kincardine, No. 6
- Ingersoll, No. 9
- St. Marys, No. 11
- Stratford, No. 12
- Woodstock, No. 13
London comes in at 39th with an average home selling price of $648,130 and an average household income of $96,000. St. Thomas sits at 26 with an average home value of $519,160 and household income of $88,200.
Zolo ranked 180 communities. The most affordable place in the province is Wasaga Beach followed by Nepean, Casselman and Ottawa.
The study looked at the price of an average home as well as the average income in the community, creating a “home-to-price” ratio. The average home price is based on information from real estate offices and household income is taken from the 2021 Statistics Canada census, according to the study.
“For housing to be affordable, home prices must be low, and the people living in the city must also earn enough to pay the bills,” the study stated.
The study also looked at the economic strength of the region.
It also took into account population growth from 2016 to 2021. “The higher the population growth rate, the more employment opportunities the city offers. The more employment opportunities, the more economically stable the city is for home buyers looking to enter the market.”