Barrie among 36 cities where homes are unaffordable for renters

For many Canadians, purchasing their home is a distant dream, but in 36 large cities, a new report says a starter home is entirely unaffordable for most renters.

The Point2Homes report lists Barrie among the cities where home prices are out of reach for those renting, with Barrie's average starter homes more typically priced well above what people can afford.

"At $375,000 to $400,000, there is nothing on the market," said Lindsay Percy, the Barrie and District Association of Realtors Board (BDAR) Chair. "There just isn't enough supply, and we're not seeing a lot of houses come on the market. Enough to satisfy the demand we have for the area, so that's causing the issue with pricing."

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Percy said homes in Barrie are typically in the $600,000 range. Less than one percent of homes for sale in Barrie met the pricing criteria for a starter home, according to the Point2Homes report.

"At the $500,000 to $600,000 range, you're looking at about eight homes, and then you may be in a situation where there are renovations required," Percy said. "So, can you really afford to buy that home and live in it?"

Geoff Halford is a local realtor with Royal LePage, who is often working closely with potential buyers looking to enter the market for the first time.

"What we are finding is some buyers are willing to travel a little bit and look at Midland or Orillia or Gravenhurst," Halford said. "Just drive until you qualify because they really want to own their home. They don't want to rent."

Halford said the cost of homes has significantly impacted the local renting market.

"It's not ideal to place a young couple or family in a 600-square-foot condo," he added. "That's postponing the starting of families because they can only afford those homes."

The BDAR believes one of the reasons prices remain as they are in Barrie is because of the large number of out-of-town buyers, shrinking the local inventory and pricing out native residents.