Housing in Red Deer is more affordable than eight out of 24 Alberta communities according to a new housing study.
Zoocasa Realty Inc. compared average home prices to median incomes and determined that Canmore was the least affordable community and Fort McMurray was the most affordable.
A community was considered affordable if the ratio between the average house price and median income did not exceed 3.0, and Canmore came in at 12.9 for one-person households, and 5.8 for two-person households.
The ratio reflects how many years it would take to pay off the average home.
Canmore’s average house price was $676,093 and the median income for one-person households was $52,224.
Fort McMurray was the most affordable community with an average house price of $439,664 and the median income for one-person households was $106,912 to give it an affordability ratio of 4.1 for one-person households and 2.0 for two-person households.
The average home price in Red Deer was $330,611 and the median income for one-person households was $43,461 to give the city an affordability ratio of 7.6 for one-person households and 3.2 for two-person households.
Mike Snell, president of Central Alberta Realtors Association, said being ranked in at near middle of the pack is not a bad place for Red Deer to be.
“I still feel that Red Deer is an affordable place to live,” Snell said.
He said Red Deer’s average home price cited in the survey was reasonable, especially since prices have declined over the past two years. The median income in the city seemed low, but employment has also taken a hit in recent years.
Sylvan Lake was ranked 18th with an average house price of $324,732 and the median income for one-person households was $51,115 to give the town an affordability ratio 6.4 for one-person households and 2.9 for two-person households.
Less affordable communities included Camrose with a ratio of 9.3 for one-person households and 3.5 for two-person households; Calgary was at 9.1 and 4.1; Okotoks was at 8.3 and 3.4; Edmonton was at 7.8 and 3.4; High River was at 7.7 and 3.5; Chestermere was at 7.6 and 3.7; and Strathmore was at 7.6 and 3.3.
More affordable communities included Cold Lake at 4.1 for one-person households and 2.0 for two-person households; Grande Prairie was at 5.9 and 2.6; Fort Saskatchewan was at 6.1 and 2.7; Airdrie was at 6.2 and 3.0; Lloydminster was at 6.3 and 2.8; Spruce Grove was at 6.4 and 3.0; Beaumont was at 6.7 and 3.0; Lethbridge was at 6.8 and 2.7; Stony Plain was at 7.1 and 2.8; Leduc was at 7.2 and 2.9; Cochrane was at 7.2 and 3.3; Medicine Hat was at 7.6 and 2.9; and St. Albert was at 7.6 and 3.1.
szielinski@reddeeradvocate.com
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