Looking to buy a home within the City of Toronto? You’d better have a million dollars on hand, as detached house prices have skyrocketed 69.9% the past five years, according to data from Zoocasa.com. Even studious down payment savers may find themselves priced out, as bidding wars and lack of supply push real estate price faster than income growth.
Consider this: With the median Torontonian income of $76,219* and assuming a buyer qualifies for a five-year variable mortgage rate of 2.00% and 30-year amortization, their affordability taps out at $636,900 – literally hundreds of thousands dollars short of achieving the detached dream.
Townhouses Still an Affordable Toronto Option
What options do aspiring homebuyers have? While some are choosing to “drive until they qualify”, and seek affordable housing beyond city lines, those intent on Toronto homeownership must find other housing options. Townhouses, which offer more privacy, autonomy and space than most condos, are quickly becoming a go-to for this buyer segment. And, according to Zoocasa, there are plenty of affordable townhouse options available for city dwellers.
Related Read: Freehold Vs. Condo Townhouse – Which is Right For You?
“While it’s no secret that buyers who wish to live within the City of Toronto face steep affordability hurdles, our data finds there are still housing options that are in line with income and wage growth. Townhouses are still within reach financially for many Torontonians, despite enjoying steady value appreciation over the past five years,” says Lauren Haw, Broker of Record and CEO of Zoocasa.
“When it comes to your home buying affordability, location can make or break your budget. We’ve highlighted the most affordable areas in Toronto for townhouses to demonstrate that even in this ever-upwards market there are options for families.”
Check out our infographic to see how townhouse real estate has performed compared to the detached house market – and the neighbourhoods where you’ll get the most bang for your buck.
