With each month, it’s getting more challenging to find an affordable condo in the 416. Data from MLS listings in Toronto show that condo prices just keep rising, faster than any other type of property.
Condos rose almost half a percentage point to an average of $605,530 from May to June 2018, and they rose 9.5 per cent year-over-year, according to the Toronto Real Estate Board.
Detached houses meanwhile, declined 2.4 per cent to about $1354,429. Semi-detached houses remained fairly stable at just under $1 million, while townhouses grew 5.6 per cent to $736,963.
Condos Remain the Only Affordable Alternative
Still, even with their rapid price growth, condos remain the only affordable option for most. As long as they stay less than half the price of detached houses, and hundreds of thousands less than semi-detached and townhouses, a condo is the best bet for most Torontonians who want to hop on the property train.
But which Toronto neighbourhoods offer the greatest condo affordability? To find out, Zoocasa compared the average price in each neighbourhood to the overall city’s average, and calculated the minimum income a buyer would need to earn in order to qualify for mortgage with loan-to-asset ratio of 80 per cent.
East-End Neighbourhoods Least Expensive
The findings reveal the least expensive neighbourhoods are Westhill and Centennial Scarborough, where the average condo price is $253,833, and the most expensive neighbourhoods are Rosedale and York Mills, where the average condo price is $966,133. That’s a difference of $712,300, meaning you could afford three condos in Scarborough for the price of one in Rosedale.
Affordability Challenges Persist
But even the most affordable neighbourhoods are still out of reach for many, especially those living on a single income.
The median income for a single-income household in Toronto is just $39,650, according to the 2016 census. Even with a 20 per cent down payment, that income would only qualify one for a maximum mortgage amount of $247,657 –- a few thousand dollars short of what you need to buy a condo anywhere in Toronto.
Condo ownership looks far more possible for those in households where there are two or more income earners. The median take-home pay for these households is a healthy $96,294. The good news is that with a 20 per cent down payment, this household would be eligible for a maximum mortgage amount of $591,347, which is attainable in 18 of the 35 examined neighbourhoods.
Prospective buyers looking at condos in downtown Toronto should be prepared to pay a premium, as all units there are at above average prices. Those focused on a bargain should check out the surrounding boroughs of Scarborough, North York, East York and Mimico, where condos can be had for less than the average price.
Check out the infographic below to see the full list of Toronto neighbourhoods and how much you have to make to buy a condo in them:
Zoocasa.com is a leading real estate company that combines online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Home buyers can browse real estate listings on the website or the free iOS app.