June 28, 2018
Where Can You Buy a Toronto Condo for Less Than Average?
Condos have long been viewed as the last bastion of affordability within the Toronto real estate market; with single-family homes remaining above financial reach for many aspiring home buyers (the average detached house price was $1,339,618 in May, despite softening 12 per cent from the previous year, reports TREB), it’s high-rise living or bust for most first-time home buyers.
However, real estate prices can vary widely by neighbourhood, especially in the City of Toronto; for savvy condo buyers seeking a deal, some parts of the city offer greater value than others.
To identify the Toronto neighbourhoods with the greatest condo affordability, Zoocasa compared the average price in each area (sourced from the Toronto Real Estate Board) to the city’s average, as well as the median income earned in Toronto households.
Not surprisingly, home affordability is a far greater possibility for those in dual-or-more-income households: according to the 2016 Census, the median take-home pay of which is $96,294. Assuming a 20-per-cent down payment, this would qualify this household for a maximum mortgage amount of $591,347 – attainable in 18 of the 35 examined neighbourhoods.
By contrast, those earning the median single household income of $39,650 would qualify for a maximum mortgage amount of $247,657 – well short of even the most affordable neighbourhoods Westhill and Centennial Scarborough, where the average condo price is $253,833.
Check out the infographic below to see how each Toronto neighbourhood ranks in terms of affordability – and how much a home buyer would need to earn to afford a condo there.