We've all heard it: “If you just stopped buying fancy coffee every day, you could afford a house.” It’s a tidy piece of advice, but in Ontario’s current real estate market, it’s more fiction than fact.
A recent study by Toronto-based real estate platform Zoocasa puts this common myth into perspective—and the numbers speak volumes. With average home prices across Ontario reaching record highs, the idea that minor lifestyle changes like skipping a $5.19 latte will make a meaningful dent in your down payment is, frankly, out of step with reality.
Let’s break it down.
The True Cost of a Home—And Coffee-Free Living
In the London-St. Thomas region, where the average home now sits at $608,500, a 20% down payment would require $121,700. That means you’d need to save your daily coffee money for 90 years to reach that goal.
It gets even more extreme in Kitchener-Waterloo and Hamilton-Burlington. With average prices of $713,800 and $820,800 respectively, buyers would have to forgo their caffeine fix for 106 years and 121 years just to scrape together a 20% down payment.
And in Toronto, where the average home costs a staggering $1,060,300, the required down payment of $212,060 would take 157 years to save if you relied solely on your latte budget.
More Than Just Coffee: Why Affordability Is So Elusive
While cutting back on discretionary spending can help build financial discipline, it's clear that the affordability crisis in Ontario is about far more than coffee runs. Wage stagnation, persistent inflation, and a severe lack of housing supply all play a significant role in pricing out the average buyer.
Even in more affordable cities like Regina, where the average home costs $321,000, skipping coffee would still require nearly 12 years to save the minimum 5% down payment.
What Can Actually Help?
According to Zoocasa’s report, potential buyers should focus on long-term strategies to reach homeownership. That includes:
Setting up automated savings contributions
Exploring TFSA or RRSP savings plans for first-time buyers
Investing wisely to grow savings over time
Working with a trusted REALTOR® to identify affordable markets and buying opportunities
Ontario’s housing market is undeniably competitive—but it’s not insurmountable. Whether you're a first-time buyer or looking to upsize, the right financial plan and professional guidance can go a lot further than sacrificing your daily brew.
So unless you’re prepared to wait until the next century, sip your latte—and let’s talk about a smarter path to homeownership.
Thinking of buying or selling in Burlington, Oakville, or surrounding areas? Let’s connect. I’m here to help you navigate the market with clarity and confidence.
