Housing Affordability Crisis Hits Muskoka Region in Ontario

Strategic Insights -

Muskoka, a picturesque region in Ontario, is facing a severe housing affordability crisis. Lifelong resident Melissa Johnson is struggling to find a home in her hometown of Bracebridge, despite her best efforts to get a mortgage pre-approval. The region's housing prices skyrocketed during the pandemic, making it nearly impossible for locals to afford homes. The average non-waterfront property sales price in Muskoka rose from $409,000 in 2020 to $730,000 in 2022, according to the OnePoint Association of Realtors.

Key Takeaways:

  • The average household income in Muskoka is $108,000, but the average price for a home is around $730,000, making it difficult for locals to qualify for mortgages.
  • Home prices in Muskoka have increased significantly, with some pandemic buyers seeing declines of as much as $365,000 when selling.
  • In 2018, a townhouse in Muskoka could be purchased for around $300,000, but now it costs over $600,000.
  • The region's work is largely seasonal, dominated by service-oriented jobs that don't pay as much as in urban centres.
  • Locals are struggling to compete with city dwellers and investors who have higher-paying jobs and can afford to purchase homes in Muskoka.
  • Some locals are moving out of Huntsville and Bracebridge proper and commuting in for work, impacting the vibrancy of local communities.
  • Melissa Johnson, a small-business owner, is considering moving but wants to stay in Bracebridge for her business, children, family, and lifelong friends.

Statistics:

  • The average non-waterfront property sales price in Muskoka rose from $409,000 in 2020 to $730,000 in 2022, according to the OnePoint Association of Realtors.
  • In 2022, the regional average household income in Muskoka is $108,000, while the average price for a home is around $730,000.
  • Some pandemic buyers saw declines of as much as $365,000 when selling their homes.
  • In 2018, a townhouse in Muskoka could be purchased for around $300,000, but now it costs over $600,000.

Sources:

  • OnePoint Association of Realtors
  • John O'Rourke, broker, Royal LePage Lakes of Muskoka
  • Melissa Johnson, lifelong Bracebridge resident and small-business owner