For the average millennial, buying homes in Toronto has always been a dream. The city is notorious for having a sky-high real estate market. Unless you’re a one-percenter, chances are you would have a hard time coming up with hundreds of thousands of dollars on a mortgage. But, just how bad is Toronto’s housing market compared to the rest of Canada? It seems as if it may be one of the worst in terms of how long it takes to save up for a home.
According to a new report by Zoocasa, the average Torontonian would need to spend 32 years saving up to put a down payment on a home in the GTA. So, if you’re 25 now, you’ll be settling into your new home at the ripe old age of 57.
The shocking statistics means that Torontonians spend an extra seven years to buy a home compared to the average 25 years it takes to buy a home in Canada.
The average home price in Toronto in 2019 was $802,4000, with an average down payment set at $502,226. As crazy as it sounds, the 6ix isn't even at the top of the list. Greater Vancouver’s average house price is $993,300, with an average down payment of a whopping $751,306.
This means that those in Vancouver actually are worse off and would need to be saving for as long 52 years before settling into their house. So you better start saving for your future during your first high school job.
The Richards Group and RE/MAX released a "Toronto Real Estate Market Watch" report back in February that predicted that the average cost of a detached house in Toronto would likely rise to $3.5 million by 2026. Based on the chart provided by them, this is a significant leap from Toronto's current housing prices.
"RE/MAX Canada is forecasting a 2% price increase in the Toronto region, compared to the 1.7% Canada-wide. This relative calm is a relief after the turbulence of recent years. We believe a bit of balance will be positive overall."
On the bright side, there are still places in Canada that offer more reasonable housing prices. The average down payment on a home in Calgary is $21,025, which is fantastic for a city!
Those who want to settle down in Calgary would only need to be saving for one year — a massive decline from the Canadian average of 25 years.