The Most Affordable Cities in Ontario for First-Time Home Buyers

The Ontario real estate market saw steep growth in 2021, making it difficult for first-time home buyers to secure a property. Bidding wars were common and there was competition across the province, including in smaller cities. 

Many prospective first-time buyers left the market empty handed. Prices have now been stabilizing throughout the spring and early summer making this a great opportunity for first-time home buyers to enter the market. Here are some of the most affordable areas to buy a home in Ontario as of September.

The top five most affordable cities in Ontario in September 2022

1. Thunder Bay, Ontario

○ Average price: $318,045

○ Annual change: 6.5%

○ Home sales: 208 (-8.8% year-over-year from 228)

Located on Lake Superior, Thunder Bay is one of Ontario’s most affordable cities for home buyers right now. It has gained the informal title of the “Canadian Lakehead” due to its position at the northern tip of the Great Lake. 

Homes are more affordable in the area than many others in the province, and while prices are still up from 2021, it has seen declines this year. In September last year, the average price was $298,509, 6.5% lower than it is now. The average price now is 46.1% lower than Canada’s average of $640,479, making it one of the most affordable places to buy a home in not just Ontario, but Canada altogether.

2.   Sudbury, Ontario

○  Average price: $449,358

○  Annual change: 9.3%

○  Home sales: 247 (-16.3% year-over-year from 295)

Sudbury is a thriving urban centre with many major attractions, cultural celebrations and outdoor green spaces. It is home to 330 lakes, as well as museums, galleries and annual festivals. Sudbury saw large growth throughout 2021 and the earlier part of this year. 

The average price is still up over 9.3% year-over-year, but as interest rates climbed over the summer, buyers hesitated as more and more homes came onto the market, that growth slowed. Since June the price has dipped slightly from $454,100, down 1.0%.

3.   Windsor-Essex, Ontario

○  Average price: $523,949

○  Annual change: -2.3%

○  Home sales: 465 (-35.1% year-over-year from 716)

Windsor is located in southwestern Ontario, on the south bank of the Detroit River, directly across from the United States. It is the southernmost city in all of Canada, and is known as the country’s “Automotive Capital”, as it is a major contributor to the industry. 

It is also one of Canada’s most affordable places to live, with an average home price of $523,949, lower than the national average by over $115,000. Current home prices are 2.3% lower than they were in September last year ($536,368).

4. Ottawa, Ontario

○  Average price: $645,987

○  Annual change: 0.4%

○  Home sales: 1,094 (-32.5% year-over-year from 1,621).

Canada’s capital, Ottawa is one of the most vibrant cities in the country. It’s home to two major universities, and boasts beautiful architecture, as well as a diverse range of unique neighbourhoods in the downtown area and in the surrounding suburbs. 

Downtown homes are generally more expensive, but a lot of the surrounding boroughs are more affordable. A condo apartment in Ottawa costs $432,400 as of September, and a townhouse $501,900, both lower than the average national home price across Canada. 

Ottawa’s average price is only slightly higher than the average, at $645,987, but there are more affordable options in the area available to first time buyers. 

5.   London, Ontario

○  Average price: $635,393

○  Annual change: -0.8%

○  Home sales: 544 (-40.6% year-over-year from 916)

London is a growing city with a diverse culture and community. The city is slightly less expensive than the national average, with the average price of a home being 635,393. Buying a condo apartment is the most affordable option in the area, with an average price of $390,800.

Detached homes, on the other hand, are in higher demand and averaging $641,800. Properties in this area are a more affordable option compared to cities in the Greater Toronto Area, and many first-time home buyers have been moving into this market.

Finding your first home should be an exciting experience and with the right resources and expertise, the journey can be enjoyable. If you’re a prospective home buyer ready to secure a property, contact an experienced real estate agent to discuss your goals and help you navigate the changing real estate markets across Ontario. 

Download Zoocasa’s free Buyer’s Guide for everything you need to know about the home purchase journey including information about searching for a home, making offers, and preparing for closing day.