Here’s how long it takes a couple to save for a house in Ontario

If you and your partner don’t plan on having children (or having them anytime soon), you’re in a better position to save for a home.

A recent report by real estate website and brokerage Zoocasa found that DINKs (double income, no kids) generally spend less time saving for a 20 percent down payment on a home (although the time spent saving varies from region to region).

According to 2022 data from Statistics Canada, the median after-tax income for two-parent households with children is $122,000, while couples without children have a median after-tax income of $96,700. 

Using data from StatsCan, Zoocasa found that higher-income (earnings of $135,790 or more before taxes) DINKs hoping to purchase a home in Toronto or the GTA (which includes the Peel, Halton, York and Durham regions) can save up for a downpayment in about eight years, based on an average home price of $1,060,300 and a downpayment of $212,060. 

Couples with medium-income earnings (income between $83,013 and $135,790 before taxes) can save in 11 years, while lower-income (income of $83,013 before taxes) pairs might need 14 years to save. 

On the other hand, dual-income families with just one child can expect to need 24.1 years to save up for a house in the GTA. 

Other places are a little more affordable. According to the report, a higher-income couple need about six years to save for a house in Hamilton-Burlington, while a middle-income pair can save up the $164,160 needed for a $820,800 house in nine years. A lower-income couple might need 11 years, while a couple with a child will need 18.7 years. 

In Kitchener-Waterloo, a high-income couple might need just five years to save $142,760 to put down on a $713,800 house. A couple in the medium-income bracket might need eight years, while a low-income couple will need 10. 

According to the report, a couple with a child will need 16.3 years. 

In Ottawa, saving $127,900 to put down on a $639,500 house will take high-income DINKS five years. Medium-income couples can save in seven years, and lower-income couples will need about nine years. Couples with a child will need 14.5 years. 

The report says the picture differs depending on where couples are located in Canada.

“For dual-income couples with one child, about 37.5 per cent of cities make it possible to reach a 20 per cent down payment within 10 years,” the report reads. 

“Cities like Saskatoon, Edmonton, Winnipeg, Regina, Saint John, and Quebec City are among the most affordable, where housing prices make saving more manageable and can help a dual-income couple with a child reach the goal in less than a decade.”

Couples without children can save for a house in just three years in some of the country’s most affordable markets.

As for why it’s harder for families to secure a home, the report says saving money is much easier for couples without children. While Canadians with and without kids have reported increased financial stresses, a recent Angus Reid survey found that 83 per cent of respondents with young children said they’ve had to delay major financial decisions like saving for the future or planning for significant expenses–much higher than the 72 per cent of Canadians overall who are delaying financial choices.

While inflation is driving stress (and dwindling savings), the report says raising children is expensive.

The report says that for low-income earners, it costs $379,510 to raise a child from birth to 22 years of age. For medium-income earners, that price tag climbs to $488,390, and for high-income earners, it can cost $706,660. 

As for how families can make it work, the report suggests budgeting for maternity or parental leave, buying a home before having children (if possible) or securing an investment property to create additional income.