How much do you need to make per year to afford different housing types in Waterloo region?

A house for sale in Kitchener in August of 2022. (Daniel Caudle/CTV News Kitchener)

The latest data from the Waterloo Region Association of Realtors (WRAR) shows the average sale price for all residential properties in Waterloo Region has declined from the February high by nearly $250,000.

Released on Wednesday, the report said the average residential price for all properties was $750,849 in August, a decrease in value of nearly 25 per cent from February 2022 when the Kitchener-Waterloo Association of Realtors (WRAR) said the average price of all residential sales was $1,007,109.

The data is skewed as the February figures do not include Cambridge data because an amalgamation of the region's two realtor associations did not occur until August 2022.

The latest set of data does include Cambridge.

The WRAW said rising borrowing costs were a driving factor in the taming of home sales in August.

“The decline was most pronounced in the apartment-style condo and townhouse categories which could indicate that rising borrowing costs are having a greater impact on first-time buyers and those looking for more affordable options," WRAR President Megan Bell said in a media relase.

WHAT CAN YOU AFFORD BASED ON INCOME LEVEL

Earlier this year, Ratehub.ca calculated the minimum annual income needed to buy a home in various cities using rental data from March 2022. The mortgage broker found you would need to be making more than $150,000 per year to afford to buy a home in Kitchener with a 20 per cent down payment.

Using the affordability calculator on ratehub.ca, if you make $100,000 a year and have zero debt or expenses, the maximum home price you can afford is $501,648. Meaning you would only be able to afford an apartment-style condominium in Waterloo region.

For those making $125,000 a year, the maximum home price they could afford would be $611,471. Meaning they could purchase an apartment-style condominium or a townhouse.

Using the same parameters assuming someone makes $150,000 a year, the individual would be able to afford a maximum home price of $722,458. This person can afford an apartment-style condominium and a townhouse or a semi.

To afford the average home price in Waterloo region an individual with zero debts or expenses must make $157,800 for a maximum home price of $750,884 – or the average of all home types.

With an income of $175,000 per year, an individual would be able to purchase a home with a maximum price of $830,688. This means they could afford the average home in Waterloo region.

If someone wanted to purchase any home type in Waterloo region, they would need to make $180,200 and have no debts or expenses. Making this much would give a maximum home buying price of $851,978.

MORTGAGE NEEDED TO PURCHASE AN AVERAGE HOME

The mortgage calculator on ratehub.ca shows to purchase an average home in Waterloo region at $750,849 with 10 per cent down, the buyer will need a down payment of $75,085 and a mortgage of $696,713 for a five-year fixed mortgage with a 25-year amortization.

The average price of a detached home was $851,654. This would require a 10 per cent down payment of $85,166 with a five-year fixed mortgage of $790,249.

For a townhouse, the average price was $610,725, which would require a mortgage of $566,691 with a down payment of $61,073.

Those looking to own a semi would be paying an average price of $655,813, which requires a down payment of $65,582 and a mortgage of $608,528.

The cheapest purchasing option is an apartment-style condominium which averaged $464,959. This would require a mortgage of $431,435 with a 10 per cent down payment of $46,496.