Why Our Building System Fails Local Income: The True Cost of Buying a Home
I like to walk. For the past 5 years, I’ve watched “developments” slowly go up—one house at a time. I use quotes around “developments” because at this snail’s pace, it feels more like inertia than development.
These days, I pass a lot already cleared and roughed in for 30+ homes—the pipes, the wires, the groundwork all done. Have been done for well over a year now, yet: just one house has been built.
And when homes do get built, they’re listed in the $700,000-$800,000 range. This gap between the necessary supply and the final, unattainable price tag is where our housing crisis lives.
The Math Doesn't Add Up
Let’s look at the numbers right here (Smalltown Ontario, Sept 2025). A typical new home in that $700-$800K range requires a hefty monthly outlay. With a mortgage of $700,000 (assuming a minimum down payment) and a current interest rate, the base mortgage payment is roughly $3,300-$3,700 per month. Add property taxes, insurance, and maintenance, and the real monthly carrying cost easily climbs to $3,600-$4,200.
Breakdown →
Cost of home = $750,000
Down payment = $50,000 (minimum required)
Mortgage needed = $700,000
Monthly mortgage payment (25-30 years, ~3.9% rate) = $3,300-$3,700
Add property taxes, insurance, maintenance = $300-$500+
Real monthly carrying cost: ~$3,600-$4,200+
Now, compare that to the local median household income of $68,000.
In finance, "affordable" housing means spending no more than 30% of your gross household income on housing costs. Anything above that, and a household is in "housing stress."
For a family earning $68,000, that affordable limit is ~$1700 a month. Buying that $750,000 home, however, consumes 66-75% of that gross income—before groceries, gas, childcare, or savings.
Breakdown →
Average local gross: $68,000 (annual)
30% (Affordable housing range): $1,700 monthly
Retained earnings after carrying cost: $1,467 - $2,067 monthly
And that’s gross. Here’s the important number: Retained Net Earnings $340-$940 per month.
Even with dual income, the numbers don’t add up. The carrying costs still consume a massive portion of the gross income:
· $90,000 household income: ~$3,600-$4,200/month= 48–56% of gross
· $110,000 household income: ~$3,600-$4,200/month = 39–46% of gross
· $130,000 household income: ~$3,600-$4,200/month = 33–39% of gross
The fact that families earning up to are still pushed near or above the financial stress threshold means the current market isn't just expensive; it's functionally exclusive.
What an Affordable Home Looks Like at Local Incomes
In housing policy and finance, “affordable” means spending no more than ~30% of gross household income on housing (mortgage/rent plus basic carrying costs like property taxes, insurance, and maintenance). Above that, households are considered to be in “housing stress,” since essential costs like food, transport, and savings get crowded out.
$68,000 household income: Affordable home price ~ $245K–$265K
$90,000 household income: Affordable home price ~ $330K–$355K
$110,000 household income: Affordable home price ~ $405K–$440K
$130,000 household income: Affordable home price ~ $485K–$525K
A System Building for Reality
We are walking past empty lots, seeing homes priced far beyond. This isn't just slow construction; it's a systemic failure. But we have the power to flip that script. Imagine those 30 homes built in weeks, not years. Imagine homes that cost $300K, not $700K. This isn't theoretical; it’s an existing, proven distribution manufacturing model applied to housing.
Homes built faster and at lower prices allow families to put down roots instead of moving farther away. Local schools, shops, and services would thrive. The community would grow—not just bigger, but stronger and healthier.
What we need isn’t more “coming soon” signs. We need a building model that delivers real homes at realistic prices. And we need it NOW.
Question:
What systemic change do you think would have the greatest impact on housing affordability in your community?
Share your thoughts in the comments. Speak soon!
