Toronto real estate has been a roller-coaster ride ever since the global pandemic arrived. The home sales and pricing situation in Toronto are unpredictable, with prices rising upwards and
Four Major Issues Facing Toronto Homebuyers
Dated: June 17 2021
Toronto's housing crisis is affecting many different housing situations. Several factors are currently affecting the market, making buying homes more difficult than ever.
Affordability of Homes
Anyone who lives or owns a property in Toronto knows that it doesn't come cheap. Even with a fall in prices in 2018, the following year again saw a recurring growth. In Toronto, an average housing rent costs around $2,385 per month. And that amount covers up around 50% of the monthly earnings of a typical household.
In Toronto, population growth is increasing every year. The city cannot supply enough houses to solve this rising demand. The construction of affordable homes also decreased by 24%. So, the existing houses in Toronto witnessed a massive hike in their market value.
The rise in the prices of condos and single-family homes directly impacted the real estate market in Toronto. However, after the regional government imposed a 15% tax on foreign investors, the market started to stabilize.
Lack of Rental Housing
The supply of new rental units has also decreased, especially for middle-class residents. According to the past few years’ trends, renters can plan on around 100,000 new rental units. But, the majority of middle-class residents in Toronto can afford only 5000 of those rental units.
At this moment, some things need to change in the Toronto housing market. For example, more flexibility in the pricing of residential properties to accelerate the fluctuating real estate situation. However, new government-mandated mortgage rules may improve the market, but only time will tell. While there's no guarantee that the real estate market will crash, most experts believe that it will experience a market dip or at least a moderation. Consult with a real estate professional to see what's available and for the best advice when considering purchases in the Toronto market.