Despite being one of the most expensive cities to buy a home in North America, with record-high rents to boot, Toronto is still the city most Canadians dream of owning a home in. Thus, it came as no surprise when personal finance site, Finder.com, revealed that, if Canadians were to move to another city, the majority (at 54%) would choose Toronto, and that’s despite the prices. Why then is Toronto’s Real Estate so consistently attractive even if it’s sometimes prohibitively expensive?
The Job Market
Toronto remains a popular destination for young grads, particularly in the flourishing tech sector. According to a Workopolis report, the wide selection of university grads, as well as the fact that hiring talent in Toronto is cheaper thanks to the currency exchange than in a city like San Francisco, means Toronto’s come into its own as a major tech industry hub. They also mention Toronto’s relatively open policy towards skilled immigrants, meaning the demand will always be there for homes, even if the prices are high.
Increase in Property Values on Toronto Transit Lines
New Toronto Transit plans are in the works which will open up the Toronto Lightrail lines along 19 km of Eglinton Avenue. As these areas become more accessible to public transit, expect the property values to increase significantly, with those areas becoming more and more attractive to commuters. Even in communities outside the GTA, the commute has become easier in recent years out of necessity, meaning greater property values, even if they’re relatively far from the city.
Population Growth and Stress Tests
Finally, it’s worth noting that despite complaints of high rents and real estate, the population growth in Toronto shows no signs of slowing down. Narcity Media recently published a report showing that Toronto’s population is growing more than any other city in North America. While this will no doubt make the current housing crunch more difficult to navigate, it also means the demand will always be there for homes. Investors in rental properties will be particularly well-served, with Toronto currently home to some of the highest rents in the country. Mortgage stress tests also assure that the default rate on mortgages remains low, ensuring the continued health of the market.