Toronto and much of the Greater Toronto Area (GTA) have been fueling a large chunk of recent growth in the national housing market. Putting aside fears of a slowdown and market lull, Toronto has witnessed soaring demand for real estate, backed by several factors. These include a growing population, influx of migrants from other cities, economic and disposable income growth, abundant employment opportunities and more positive sentiments in general amongst home buyers.
While real estate growth has been widespread in the Toronto housing market, it has also led to concerns over unaffordability of homes. Rising prices have kept several neighborhoods and localities in Toronto and its surrounding areas out of reach for a large chunk of prospective home buyers. Recent studies, however, indicate that there are still a few affordable localities in this housing market that first-time buyers can take a look at.
Toronto still has some affordable residential localities for home buyers
There are some localities in Toronto where condominiums are comparatively affordable, particularly for first-time real estate buyers. However, they will have to shift a little away from their nearest subway stations or urban shopping zones for acquiring properties at lower rates. Several studies have noted that the northwest and northeast corners of Toronto have comparatively affordable prices for condos since they are located at some distance from the key employment zones in the city. Studies have noted that 10-12 such areas have condominiums being retailed at approximately $450,000 or even lower.
This is affordable for an average household in Toronto as per experts. The most affordable locality in the 416 is the West Hill locality in Scarborough. The average condo here is priced at around $325,223 and a down payment will necessitate 7.7 months’ worth of rentals paid in the area. However, at the opposite end of this vast spectrum is an area like Yorkville-Annex-Summerhill, where, going by the average rental rates, it would require 74 months for accumulating down payment for a home. As a result, the far corners of Toronto are naturally the most affordable for home buyers. Rich neighborhoods are usually located in more coveted zones in Toronto including those in proximity to the subway stations and retail hubs.
Overall, studies estimate that any average household that saves 20% of total income will require three decades to buy a regular home in Greater Toronto. This goes up to a whopping 50+ years for Vancouver. Yet, there is still hope for mid and low income home buyers with several condominium projects available in peripheral zones at comparatively lower prices and the Government’s upcoming housing affordability schemes for first-timers.
More information on affordable neighborhoods in Toronto
Here’s taking a look at average property prices and other figures for some of Toronto’s most affordable residential neighborhoods.
- Malvern Rouge has an average condo price of $372,163 and average condo lease rate of $2,100 per month.
- Rexdale-Kipling, West Humber-Claireville comes with average condo prices of $387,794 and average monthly rental rates of $2,045.
- Willowridge-Martingrove-Richview has an average condo selling price of $429,451 and average monthly rental rate of $2,343.
- Black Creek, York University Heights has an average condo selling price of $407,395 and average monthly rental of $2,131.
- Dorset Park and Kennedy Park have witnessed average condo selling prices of $404,360 and monthly lease rates of $2,074.
- East York, Danforth Village have average condo prices of $450,524 and monthly rental rates of $2,309.
- Scarborough Village, Guildwood has an average condo price point of $415,568 and monthly lease rate of $2,104.
- Morningside, Woburn, Bendale have average condo prices of $448,522 and monthly lease rates for condos at $2,271.
- Yorkdale-Glen Park, Weston has an average condo selling price of $456,438 and monthly lease rates of $2,179.
There are many other comparatively affordable areas highlighted in studies including Leaside, Thorncliffe Park, Flemingdon Park, Milliken, Agincourt North, Hillcrest Village, Bayview Village, Bathurst Manor, Clanton Park, Islington City Centre West and more. These are places where first-time homebuyers can invest in property prior to planning for costlier housing units nearer to the city core within a few years’ time.