So we all know that home prices in Toronto are reaching their peak levels, and are at the highest they’ve ever been. But just how expensive have they become? And what is one supposed to do when they’ve been priced out of the Toronto area they want? The charts below explain further.
The above chart shows that on average, home prices have increased drastically. But break these numbers down to get the percentage increase and what do you have? These figures here:
- A 262% increase in the average price of detached house in the Leaside area,
- An increase of 210% in the Kingsway area,
- A 168% increase in the Junction area,
- A jump of 152% in the Beach area,
- And a 143% increase in the Moore Park district.
It’s also worth noting that these districts represent a number of different neighbourhoods. While the C9 district is mostly known as Moore Park, it also includes the popular neighbourhood of Rosedale. The W2 district, in which the Junction sits, also includes the Bloor West Village, High Park and Bloorcourt. And while Leaside might be the area most of us think of when we think of the C11 district, it also includes Thorncliffe Park and Flemingon Park.
So, can’t afford Leaside? You may want to look in Todmorden Village. If the Kingsway district is out of your reach, you might want to try West Hill. And if the very pricey Moore Park isn’t going to do the job for you, maybe looking in Cliffside would garner you better results. And if the Junction is still too much for you, perhaps a look in Weston Village will get you what you’re looking for.
These prices have clearly increased far past the rate of inflation. If prices simply had moved with inflation alone, the Leaside neighbourhood would have been just over $430,000 in the Leaside area. Instead, the price an the average Toronto mortgage in Leaside was $1,165,197.
The stats from last year were used in the comparison, as not all stats for this year could be in yet (although rest assured, the blue portions of the chart will be only higher next year.) These stats were compared with 1996 stats, because it’s this year that has the most comprehensive data. Any year before 1996 may have home prices in Toronto, but not broken down into such specific categories and districts to give such an accurate picture.
Of course, you can’t overlook the fact that these are the prices of single, detached homes in Toronto – the homes that are known to be the costliest, and the fewest in supply at the moment. But what if you’re looking at a semi-detached home? A townhouse, or a duplex? Sadly, the numbers aren’t much better. And if you’re looking in the Moore Park area, you might be surprised to find out that a semi-detached is going to cost you more than a detached.
The above chart shows that:
- Prices have gone up 227% in the Moore Park area,
- In the Junction area, they’ve gone up 188%
It is important to note that while these charts and stats do show a severe jump, you also have to keep in mind that in 1996, Toronto was just getting over the recession that hit in the early 90s; and so, prices were probably a bit lower than they would be in an economy that was happily chugging along.
Still, these numbers show that prices in Toronto have increased over 100% for both detached and semi-detached, and that those increases have priced many out of the market that they wanted to be in.