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montreal income

To the surprise of no one, the income a single Montrealer needs to live comfortably rose by 9% between 2022 and 2023. That's according to the Institut de recherche et d’informations socioéconomiques (IRIS), which published the 2023 edition of its sustainable income report on May 3.

The report identifies the minimum-income residents of seven Quebec cities — Gatineau, Montreal, Quebec City, Saguenay, Sept-Îles, Sherbrooke and Trois-Rivières — need to live not just above the poverty line but "with dignity."

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In this topsy-turvy economy, home prices have plummeted but the income needed to afford them continues to increase.

That's according to Ratehub.ca, which every month calculates the income necessary to afford average real estate prices in each major Canadian city. The mortgage broker also weighs mortgage rates, stress tests (which examine a household's ability to pay their mortgage if rates increase), utility prices and taxes.

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What Canada's second-tier cities lack in glamour they make for in affordability. Of Canada's three largest cities, only Montreal makes it onto a new ranking of the top 10 most affordable cities in Canada for first-time homebuyers.

The ranking, by Alberta-based real estate platform Edmonton Homes, is based on an evaluation of average home prices, property taxes and energy costs compared to median incomes. The platform quantified these metrics and gave each city a score out of 60.

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Buying a home for sale in Montreal requires a completely ridiculous amount of wealth, according to a June report from Ratehub.ca. Using a calculation of June 2022 mortgage rates, average home prices and property taxes, the mortgage broker compiled estimates of the annual income residents in 10 Canadian cities need to buy a local property.

In Montreal, the income estimate was a whopping $110,900, up 17% ($15,830) compared to March 2022.

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A new report breaks down "livable income" thresholds in seven Quebec cities. The study from the Institut de recherche et d’informations socioéconomiques (IRIS) examined the cost of living in Gatineau, Montreal, Quebec City, Saguenay, Sept-Îles, Sherbrooke and Trois-Rivières to determine how much money a household would need after taxes in 2022 to live both above the poverty line and "with dignity" in each urban area.

The IRIS calculated livable incomes for three types of households: a person living alone, a couple with one child in publicly subsidized daycare (a CPE), and a couple with two children in a CPE.

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In case working didn't make you sad enough, the February 2022 Rental Market Report from the Canada Mortgage and Housing Corporation (CMHC) suggests the ability to simply afford a Montreal rental apartment is requiring more work hours.

As of October 2021, a Montreal-area resident making the average wage had to work 105.8 hours a month in order to not spend more than 30% of their gross income on rent for an average two-bedroom apartment. That's almost three hours more than they had to work in October 2020 (102.9 hours). As a benchmark, CMHC notes that 150 hours a month (or 37.5 hours a week) is considered full-time.

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