Renters in Mississauga, Ontario, are facing significant challenges in affording a starter home, according to a study by Point2Homes.

The study reveals that in 24 cities across Ontario, renters earn 13 to 59 percent less than the minimum income required to cover the mortgage for a starter home comfortably.

Mississauga is among the top 12 cities where renters earn approximately half the required amount.

The average renter’s household income in Mississauga is just over $70,000, while the income needed to buy a home is $127,118, resulting in a 45 percent shortfall.

The soaring housing prices contribute to the affordability crisis. While starter homes in Mississauga used to be around $200,000, the average price for all home types now exceeds $1.1 million.

The study states that a starter home in Mississauga is priced at $536,950, requiring a downpayment of $107,390. However, the situation is even more challenging in neighbouring Oakville, where renters fall 58 percent short of their homeownership dreams.

First-time buyers may have to consider moving out of the city or even the province to find affordable homes. But you never know your options until you speak to a mortgage professional who will help explain your options with you.