In one of the country’s hottest housing markets, Toronto is seeing increases in sales but also in prices as of September 2019 according to a recent report. In the TREB report, the GTA’s strong economy, cultural diversity and ranking of 16 in the Mercer Quality of Living Survey are attracting newcomers to the area each year.
Increasingly attractive to millenials, the city has unfortunately not kept up to the housing demands of a growing population of younger and increasingly diverse citizens.. Following Toronto’s market boom, luxury properties have increased in number and housing in general has increased in price, risking a bubble. In the current state it is especially difficult for younger people to enter the ownership market. Despite the increase in millennial population requiring affordable housing, there have still been increases in sales revenue and the average home price. In lieu of a cooler market, many young people are looking at buying options outside the core, utilising the GO Train system which services the entire GTA. Other options are downsizing or living in a lower valued neighbourhood. With the increase in tech ventures in the city, the people working for them will be looking for affordable options in the city’s core. Affordability is a key driver in homelessness in Toronto as a result of average income increases of 30% while housing costs have increased by 131%. More and more people are relying on rental options but the rental market is getting so hot that most young people are forced to reevaluate their needs and consider sacrifices that can be made in terms of location, or making due with smaller units. While affordable rental properties are needed, renting is perhaps still the best way to give people an opportunity to save for a home purchase. So the question being, how to buy a house in Toronto? With a growing demographic of millennials finding it difficult to enter home ownership traditionally, it doesn’t seem possible in a bubbling market. But don’t lose hope because the market is beginning to adapt and with the right push Toronto can see an influx of purposeful housing availability able to meet the unique needs of today’s home buyer.
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Cecil Darren Frank - Toronto Real Estate AgentArchives
October 2019
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