It continues to be one of the priciest markets for real estate in Canada, but the housing market in the Greater Toronto Area (GTA) is largely reflective of the ongoing housing crisis in Canada. Traditionally, Ontario as a province and the GTA have been a strong magnet for immigrants looking to start a new life in the country. Being a first-time homebuyer is a rite of passage that continues to be an enduring aspect of the immigrant experience.
Even though Canada has seen record levels of immigration in the recent past and is expected to do so in the near future, the lack of adequate housing stock and a difficult economic environment have forced many newcomers to wait out this period of uncertainty and put off their homebuying plans.
But if you are seriously considering purchasing a home this year, we would like to share a list of suggestions for neighborhoods or communities in and around the GTA that you might want to check out for when you do eventually decide to take the plunge.
Where the GTA housing market is at right now
Recent data shared by the Toronto Regional Real Estate Board (TRREB) pointed to an overall slump in sales across housing types and a marked expansion in housing supply, which has offered greater choice to prospective homebuyers. However, buyers, especially first-time homebuyers, continue to remain non-committal in anticipation of a further improvement in borrowing costs and sales prices later in the year.
The average price of a house in the City of Toronto, as of June this year and regardless of housing type, was pegged at $1,173,781. For the rest of the GTA, the price was $1,155,637. Overall, becoming a homeowner in the Greater Toronto Area will currently cost you around $1,162,167, and some more.
Let’s break this down further for current average prices based on housing type, as shared by TRREB.
- A detached home costs around $1,758,649 in the city of Toronto and $1,388,144 in the rest of the GTA.
- A semi-detached home is worth around $1,282,973 in the city of Toronto and $985,834 in the rest of the GTA.
- The price tag for a townhouse is $1,008,467 in the city of Toronto and $909,764 in the rest of GTA.
- Even though condo apartment sales have plummeted in the city and surrounding areas, a single unit still costs $763,148 in the city of Toronto and 657,147 in the rest of the GTA.
Homeownership in and around the GTA
The growing unaffordability of homeownership for many Canadians and newcomers alike is reflected in the reported instances of inter-provincial migration in Canada, as many people are choosing to move from the GTA or Ontario to other provinces for better work opportunities and more affordable housing options.
If you have chosen to stay put for a variety of reasons, there are certainly many options that you can still explore for housing. This might mean moving slightly away from the city, but good transit connectivity and a better quality of life (in relative terms of course), could make the suggestions shared below worth considering.
Given current housing price trends and data, outside of the city of Toronto, the regions of Durham, Peel, and Halton continue to be the top choices for homeowners with families. But Peel and Halton are also pricier, compared with Durham, where the following municipalities might be worth considering.
Oshawa, Whitby, Ajax, and Pickering – With excellent highway and transit connectivity (regional transit and GO Transit) to Toronto—driving commute times can range between 30 minutes to over an hour, and between an hour to an hour and a half by transit—these boroughs outside the GTA offer the best of both worlds. Easy access to the city for work or entertainment, coupled with a tranquil and peaceful home life in neighborhoods that enjoy proximity to nature, a range of family-friendly amenities, and more affordable living.
Peterborough, Kawartha Lakes, Hamilton, and St Catharines – Though technically not part of the GTA, these cities have also been getting noticed for the positives they offer. They are fairly accessible and have many more affordable housing options if you are looking to stretch your dollar even further. Driving commute times to Toronto range between an hour and a half to about two hours.
Buoyed by a surge in demand during the pandemic, many families took advantage of the growing remote work culture, including remote education for their children, to move out of high-density urban areas, such as the GTA. The housing markets in these cities are still nowhere near as saturated and expensive as in and around Toronto. If you are amenable to living farther away from Toronto, take the time to visit and check out the housing scene in these cities.
Federal, Provincial, and City Resources/Credits for First-Time Homebuyers
First-Time Home Buyers’ Tax Credit
Ontario Land Transfer Tax Refund
First-Time Purchaser Rebate (Toronto only)
Local Homeownership Programs Run by Various GTA Municipalities
If you need more information about buying a home in the GTA or farther away, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.
Have a good weekend!