London is a mid-sized city in southwestern Ontario with a diversified economy anchored by healthcare, education, manufacturing, and financial services. While household incomes are below the provincial average, London offers more affordable housing than the Greater Toronto Area.
Average and median income in London
| Metric | London | Ontario | Canada |
|---|---|---|---|
| Average Household Income | $126,500 | $154,700 | $146,600 |
| Median Household Income | $103,200 | $125,700 | $121,000 |
Source: Statistics Canada, Census 2021 (updated with CIS 2023 trends).
London’s household income is significantly below the Ontario average, reflecting the city’s lower concentration of high-paying financial and tech sector jobs compared to Toronto and Ottawa.
Income vs. housing affordability in London
| Metric | Amount |
|---|---|
| Median Household Income | $103,200 |
| Average Home Price | $584,000 |
| Price-to-Income Ratio | 5.7× |
London’s 5.7× ratio is better than Toronto (7.6×) but worse than Ottawa (4.8×) or prairie cities.
How London compares to other Ontario cities
| City | Average HHI | Median HHI | Avg Home Price | Ratio |
|---|---|---|---|---|
| Ottawa | $158,200 | $131,500 | $630,000 | 4.8× |
| London | $126,500 | $103,200 | $584,000 | 5.7× |
| Hamilton | $142,600 | $116,800 | $807,000 | 6.9× |
| Toronto | $163,100 | $131,900 | $1,009,000 | 7.6× |
Use our mortgage affordability calculator to see what you can afford.
Key industries driving London income
- Healthcare — London Health Sciences Centre and St. Joseph’s Health Care are among the city’s largest employers. London is the regional medical hub for southwestern Ontario.
- Education — Western University and Fanshawe College provide education sector employment and attract a young workforce
- Insurance and financial services — London is known as an insurance industry hub, with London Life (now Canada Life), Intact Financial, and other insurers
- Manufacturing — Automotive parts, food processing (Maple Leaf Foods, Dr. Oetker), and advanced manufacturing
- Digital media and technology — A growing sector supported by Western University’s engineering and business graduates
- Defence — Canadian Forces Base London
Rental affordability in London
London’s rental market offers a middle ground for Ontario:
| Housing Type | Average Monthly Cost | % of Median HHI |
|---|---|---|
| 1-Bedroom Apartment | $1,350 | 15.7% |
| 2-Bedroom Apartment | $1,600 | 18.6% |
| 3-Bedroom House Rental | $2,000 | 23.3% |
| Average Home Mortgage (20% down) | ~$2,680 | 31.2% |
London rents are significantly lower than Toronto (where 1-bedrooms average $2,300+) and slightly below Hamilton. However, the mortgage-to-income ratio at 31% puts homeownership right at the edge of affordability for a median-income household.
Take-home pay: London vs. other Ontario cities
Since all Ontario cities share the same provincial tax rates, the key difference is in housing costs relative to the same take-home pay:
| Gross Salary | After-Tax (ON) | London Housing (% of take-home) | Toronto Housing (% of take-home) |
|---|---|---|---|
| $60,000 | $46,900 | 34% | 52% |
| $80,000 | $60,500 | 27% | 40% |
| $100,000 | $73,700 | 22% | 33% |
Housing costs based on average mortgage payments (20% down, 5-year fixed). Use our income tax calculator for your exact take-home.
A London resident earning $80,000 spends roughly the same percentage on housing as a Toronto resident earning $120,000, illustrating London’s value proposition for remote workers.
Income trends in London
London has experienced significant economic shifts:
- 2010–2015 — Recovery from the closure of major manufacturing plants (Caterpillar/Electro-Motive Diesel, Kellogg’s), which had been significant employers
- 2016–2019 — Diversification into tech and digital media, anchored by Western University graduates entering the local workforce
- 2020–2021 — Toronto remote workers discovered London’s lower costs, driving significant population and housing price growth
- 2022–2025 — Housing price correction from peak, but prices remain 40%+ above 2019 levels. The remote work migration stabilized, with London retaining many new residents
London’s insurance sector has provided an unusually stable employment base through these cycles, with Canada Life (formerly London Life) and Intact Financial maintaining major operations.
Cost of living beyond housing
- Ontario HST of 13% — Same across all Ontario cities
- Ontario Health Premium — Up to $900/year for incomes above $20,000
- Transit — London Transit Commission; less extensive than Toronto’s TTC but lower-cost monthly passes (~$85 vs. $156)
- Childcare — Average $1,100–$1,400/month, lower than GTA but still significant for families
- Utilities — Average $220–$280/month, comparable to other mid-sized Ontario cities
- Auto dependency — London is more car-dependent than Toronto, making vehicle ownership costs (insurance averaging $1,600–$2,000/year) a significant budget item
Estimate your London take-home pay with our income tax calculator or salary calculator.
Related tools and resources
- London Housing Market — Current home prices and trends
- Ontario Mortgage Rates — Find the best rates
- Ontario Land Transfer Tax Calculator — Calculate closing costs
- Income Percentile Calculator — See where your income ranks
- Mortgage Affordability Calculator — How much home can you afford