With prices in Toronto on a steady upward march, the city’s households each need to make an estimated $84,000 annually before tax to make ends meet in 2021, according to the latest cost of living report by LowestRates.ca.
This analysis came in the wake of the latest data from the Toronto Regional Real Estate Board, which showed that the average selling price for all residential asset classes in the GTA in 2020 was $929,699.
Homeowners in the city will need to shell out $3,792.33 per month on average for housing expenses alone. LowestRates.ca estimated that on the benchmark home price, and assuming a down payment of 15% with a 25-year amortization period and a five-year fixed rate term at 1.68%, a monthly mortgage payment in Toronto would cost around $3,191.
This is a burden to be endured by a significant fraction of Toronto’s population, considering that single-detached housing continues to be the asset class of choice in the city, according to a recent analysis by Altus Group.
The market saw 1,506 new single-family homes sold in January, the largest number of January transactions involving this property type since 2006. Concurrently, remaining inventory across all residential asset classes fell to 12,774 units.
However, even rental homes, which have seen double-digit decreases in costs over the past year, will still need approximately $1,914.50 in monthly upkeep, LowestRates.ca said.
Overall, monthly costs for homeowners run up to $4,886.57 for those who commute, and $5,201.56 for those who drive. Renters who commute need an estimated $3,008.74 monthly to live in Toronto, while those who drive need approximately $3,323.73 monthly.