Previously deemed as an ideal option for households with more restricted resources, condos in Toronto have become increasingly costlier over the past few years.
A new analysis by real estate information portal Zoocasa found that a condo in the City of Toronto valued at an average of $628,074 (as of Q3 2019) requires down payment equal to 14.7 months of the market’s average rent rate – a daunting prospect for any first-time buyer or hopeful home owner on a severe budget.
Coupled with a steady increase in renting costs, these factors continue to wreak undue anguish upon most of the consumer population.
“This eroding affordability in the rental marketplace has put considerable pressure on home seekers; after media reports of doubling rents in 2017, the former Ontario government put rent controls in place that limit annual lease renewal increases in buildings built prior to November 15, 2018, to the rate set by the province (under the current provincial regime, all rentals created after this date are exempt from the cap),” Zoocasa noted.
Fortunately, some neighbourhoods might prove to be more hospitable prospects, Zoocasa stated.
Most promising among these options is West Hill, Centennial Scarborough, where the average condo price (as of the third quarter) stood at $325,223. This translates to down payment needing just 7.7 rental months.
Malvern, Rouge’s average condo sales price of $372,163 requires down payment equivalent to just 8.6 average rental payments, while Willowridge-Martingrove-Richview has a reasonable $429,451 average, or 9.2 months of average rent.
Rexdale-Kipling, West Humber-Clairville has an average condo price of $387,794 (down payment equal to 9.5 rental months). Black Creek, York University Heights is another potential destination, with its average condo value of $407,395 needing down payment equivalent to 9.6 months of rent.