Ontario and B.C. most expensive provinces to save for a home; Newfoundland and Labrador the cheapest

A new housing study is saying what most in Ottawa already know; Ontario is the most unaffordable province in Canada to save for a home.

The study, done by metrovancouverhomesource.com identified the Maritimes, and specifically Newfoundland and Labrador, as the most affordable part of Canada when saving to buy a home.

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The study took into account not only the average home price, but also the median household income and cost of living factors within each province.

At $57,000 a year, it's Newfoundland and Labrador's annual household income that sets it apart from the rest of the east coast.

"[Income] is higher among those provinces," says Katrina Amurao, PREC & Team Leader at Katrina & The Team EXP Realty in Vancouver, who sanctioned the study.

"And then relative to the cost of living, education, transportation, of course the prices of homes are cheaper there too."

New Brunswick ranked as the province with the least expensive average home at $289,000 in 2022. Newfoundland and Labrador wasn't far behind in second place with $291,000.

"You can't buy anything in BC for $291,000," says Amurao. "Not even a condominium or even a mobile home these days."

University of Ottawa economics professor David Gray says more and more young people are choosing to live outside of traditionally popular cities in places such as Ontario and B.C. due to affordability.

But Gray says, ultimately, young people need to go where the jobs are.

"There's definitely a mobility cost. It costs money to move in the first place. And there has to be something to pull them there. There has to be the pull factor," he tells CTV News.

"In B.C. and Ontario, a lot of the big companies are there so there's more jobs," adds Amurao. "It doesn't necessarily mean a reflection of the income. There's just more jobs in those in those provinces."

Ontario ranked as the worst province in Canada in which to save for a home. The average home price came in at $931,000, while the median annual income was just $41,000.

British Columbia wasn't far behind with an average home price of $996,000 and a median income of $42,000.

Ottawa-based realtor Carl Brunet says he's having clients trade in the national capital region for Maritimes living.

"We've had many clients say, 'Hey, we're ready to pack it up and just go move out east'," says Brunet.

"For the same price that you can get a townhouse in Ottawa, you're getting an ocean view out east."

Brunet adds that the search for affordability is already happening on a local scale for those who cannot pick up and move provinces.

"There's very little inventory within the city limits, but if you reached out a little bit in the outskirts; Carleton Place, Rockland areas; you can get a little bit more house and maybe have a better lifestyle for the same affordability."