History of The Real Estate Market in Toronto
If you’ve lived in Toronto for the last 10 years, then you’ll know how crazy the real estate market here can be. What was once a smaller city in Canada, is now on the board with major cities such as LA and New York, with the high prices to match. Nowadays it is nearly impossible to find a house for under a million dollars, not even in just Toronto, but now expanding into the GTA. Houses in areas like Durham are going for over a million dollars, an unheard-of amount in the past. Even condos and apartments in Toronto are going for millions of dollars. It is uncommon to find a unit for rent in Toronto that is less than $1800/ month. Over the course of the last few centuries, the state of Toronto has changed, from undeveloped land to a new town, turning into a bustling city and eventually becoming the major metropolis that it is now.
Over the last two decades, housing prices have skyrocketed in Toronto. This includes condominiums, single-family homes, multi-family units and townhomes. Ever since the year 2020, marking the beginning of the COVID pandemic, house prices have accelerated at an unusually high rate. The trend overall has always been upwards for the most part, with some dips in 2018, however sudden significant increases have been occurring with much frequency. From the start of the year in January 2022 to May 2022, prices have already increased by hundreds of thousands of dollars. This is not surprising to see as the cost of almost everything, even basic necessities, has gone up over the course of the pandemic, and housing prices are no exception. Unfortunately, these changes have made the idea of homeownership, at least within Toronto, seemingly impossible.
In the year 2000 the average real estate prices were much less expensive than they are today in 2022 and were as follows:
Condominiums: $145,232
Condo Townhouses: $163,376
Townhomes: $215,601
Detached Homes: $251,747
Flash forward 2 decades later to the current year 2022 and prices have increased significantly overall, with detached homes seeing the most growth as of January 2022:
Condominiums: $698,684
Condo Townhouses: $809,691
Townhomes: $1,242,247
Detached Homes: $1,337,949
The historical performance over the last decade indicates a significant increase in the cost of real estate in Toronto, jumping up by a monetary value of $621,000 or 138%. The average property price in Toronto comes out to $1,068,878. The average property price in Toronto today, in the summer of 2022, can be seen below for some different property types.
Condominiums: $736,908
Condo Townhouses: $841,512
Townhomes: $1,300,251
Detached Homes: $1,384, 896
The numbers do not lie, and it is clear to see that Toronto has gone through some major changes, not only do the prices keep increasing but in some cases, multiple lots are brought up by one person to build a massive property on the land. There has also been an increase in foreign investment, with wealthy people from other countries such as China, buying up properties in hot spots such as Toronto for prices that the average citizen cannot afford. This effectively outbids local residents but also drives up housing prices artificially. Gone are the days when one could afford to buy a house with an average job on an average salary, it can even be hard for dual-income households to make rent prices now let alone possess strong purchasing power.
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