Toronto is one of the most sought-after places all over Canada. Thousands of people hope to find a place in the hustling and bustling of the city. For this reason, the price of houses and real
How the Toronto Real Estate Market Has Changed Over 25 Years
Dated: March 30 2022
Toronto is one of the most sought-after places all over Canada. Thousands of people hope to find a place in the hustling and bustling of the city. For this reason, the price of houses and real estate is one of the highest, and that's no surprise.
The world is constantly under inflation. Similarly, the real estate market is no different; we observed costs getting higher continuously. The average home pricing in the greater Toronto area was about $198,150 in 1996, which seems like a ridiculous amount by today's standard. The same house costs about $1.1 million in 2021, meaning more than a 450% price increase in 25 years.
Now, let us look at the price increase and differences between the different regions in GTA. The average increase is 450%, and there are many areas where the price increase percentage is even higher than 500%.
The Toronto Central, Halton, York Region, Simcoe County, and Dufferin County have seen triple-digit price increases. The Toronto Central area has seen the lowest triple-digit price increase, at 301%. On the other hand, the housing prices in York Region have increased a hefty 874% in 25 years, almost three times the increase in Toronto Central area.
The Durham and Halton region prices increased 507% and 447%, respectively.
Multiple factors ramped up the housing prices this much. Apart from general inflation and population increase by 2 million more people, other events such as the tech meltdown of 2000, then 9/11, SARS, the recession of 2008, and COVID-19 have influenced house prices a lot. Research has also shown that available land has dropped over the past 25 years, leading to more high-density builds - like condos and townhomes. Overall, the sale of residential property increased 118% in the GTA since 1996.
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Toronto is one of those few places where housing prices have skyrocketed in recent years. A house used to cost about $200,000 costs a lot more now, 25 years later, at about $1.1 million on average.