Toronto is one of Canada’s most beautiful, popular, and in-demand cities. Every year, more and more people are packing up their bags and moving to Toronto and all the wonders that it offers.
According to the Canadian Real Estate Association, up to 24,429 people moved to Ontario in the second quarter of 2023 – a substantial increase considering the pandemic and the unstable economy.
And there’s a good reason for that: Toronto offers plenty of attractions for families, couples, entrepreneurs, businesses, and people looking to explore while working. Let’s take a look at these reasons in a bit more detail.
There are several reasons why people, such as Canadians or immigrants, move to Toronto. These include the following:
- A multi-cultural community accepting all individuals, cultures and religions
- High-quality and free healthcare for all (might you, all of Canada has free healthcare)
- A city that is promoting “green” initiatives, such as cycling lanes and advanced public transportation, while also providing easy access to quality water and green spaces
- Toronto is a major contributor to Canada’s economy and is one of the biggest financial sectors in the country. You’ll also find a job here if you want one!
- Toronto is home to some of the world-class restaurants and dining options that cater to various tastes and individual preferences
- Progressive and forward-thinking individuals, businesses and economy
- Vibrant spot with plenty of activities, events and shows – you’ll always find something to do on weekends, weekdays and with family or friends
- A great city for sports nuts. Some popular teams include the Toronto Maple Leafs, Toronto FC – who won the MLA championship a few years ago – and the Toronto Raptors – also NBA champions
- A perfect balance of all four seasons in one place
With so many people moving to Toronto, you might be wondering if there is any space for you as well. Rest assured there is. Toronto has a thriving housing market, which is currently booming compared to other cities (Alberta being the close second). You have your choice of detached homes, attached homes, townhouses, condos, and apartments.
However, when it comes to buying a house in Toronto, it’s important to recognize the factors that impact the cost of these homes. Here are the most important things to consider when buying a home in Toronto:
The Location of the Property
Everyone always says, “location, location, location”, and we know why: the location of your property will greatly impact the cost of a home. The closer you are to amenities (such as shopping, medical centres, and schools), safer neighbourhoods, and popular spots, the more it will cost you.
The Size of the Property
Simple mathematics here: the bigger the property, the more it will cost you. No shocks here that a detached home will set you back more than a condo or apartment.
Age & Condition of the Property
When you buy a car, you check for the quality and condition of its engine, how it runs, how old it is, and whether it requires any maintenance or additional repairs. The same applies to the home you wish to purchase. You need to assess the age, condition, and any prospective work you need to do to ensure it maintains and improves its value.
The Economy & Local Markets
As much as we don’t like it, market factors greatly affect the pricing of homes. How the economy is operating, what is happening on the ground floor in Toronto, and global markets all impact how much a home costs. As Open Door stated, “if employment or wage growth slows, then fewer people might be able to afford a home or there may also be less opportunity to relocate for new opportunities.” Therefore, it’s important to keep an eye out for the market and how it affects Toronto properties.
It can be difficult to gauge the price of a Toronto home without inspecting properties yourself firsthand. However, having some data and research on your side can prove useful in your search. Our research has proven valuable in determining the average cost of a home in Toronto:
- According to Canadaimmigrants.com, “the average house price in Toronto is $1,172,900”
- WOWA Canada offered similar numbers, stating that the “average home sold prices in Toronto continued to break all-time records this month, reaching $1,163,323 for November 2021” with detached homes increasing “by 30% year-over-year to $1.57M”
- The Toronto Regional Real Estate Board reported that “the average home price in the region stretched to $1,163,323, an almost 22 percent jump from $955,889 in November 2020.”
We also looked at the average cost of a condo in Toronto to offer a comparison on how different home types can affect the cost. Here is what we found in our research:
- Canadian Real Estate Magazine said that “a two-bedroom condo in Toronto in late 2023 went for an average price of $772,000” while a three-bedroom condo in Toronto went for “an average price of $925,000”
- The Toronto Regional Real Estate Board also backed this up by stating that the “average Toronto condo price to $721,109”, which was “a significant increase from the first quarter of this year, which averaged $675,844, and is much higher than the current GTA average of $686,312”
However, while these numbers are consistent and high, the various factors mentioned above – the location, size, and style of home – do affect the overall price.
It’s best to speak directly to a realtor to discuss the possibility of buying a home in Toronto or the GTA region. Being on the ground, you can get a better idea of the prices for homes throughout Ontario.