Ontario markets among Canada’s least affordable – ReMax
Despite a commonly held notion that housing in Canada is unaffordable, a majority of Canada’s largest cities (75 per cent) are currently undervalued, according to the 2020 ReMax Housing Affordability Report.
Unfortunately, seven centres in Ontario rank in the top 10 markets that are least affordable.
“Affordability was a cornerstone narrative during last year’s election, perpetuating the overall banner statement across Canada that real estate is increasingly unaffordable and unattainable, particularly for younger, first-time home buyers,” Christopher Alexander, executive vice-president and regional director, ReMax of Ontario-Atlantic Canada, told HOMES Publishing. “This perception is largely influenced (and skewed) by the Toronto and Vancouver markets, which represent some of the most expensive housing markets in North America. However, the housing market is more than these two cities and paint quite a different story. More markets are affordable than not, and most are accessible, with 75 per cent of brokers agreeing that their markets are undervalued.
In markets such as Toronto, demand is far outstripping supply, pushing prices up considerably as a result. “We need to continue to push for an increase in housing supply for buyers and renters, but we have yet to see a comprehensive national housing strategy to help facilitate this shift,” says Alexander.
“Given that approximately 110,000 new Canadians are settling in the GTA each year, the lack of available supply is a huge problem. This is concerning for affordability and needs to be addressed by a national housing strategy. Otherwise, we’ll only see the problem continue to grow and the home prices will continue to climb across the GTA.”
Of the regions surveyed, Winnipeg, Regina and Halifax are currently the most affordable markets, with average sales prices of $281,105, $301,473 and $319,071, respectively. Vancouver, Toronto and Mississauga are currently the least affordable regions in Canada, with average sales prices of $1.19 million, $883,520 and $760,005, respectively.
In Toronto, factors such as the OSFI mortgage stress test, listing shortages, rising prices and saving enough for a down payment are cited as preventing buyers from purchasing property. Buyers in this region are primarily looking to purchase condominiums, but as one of Canada’s least affordable housing markets, they continue to be priced out.
Emerging trends such as co-ownership with friends and family have become common in hot markets such as Vancouver and Toronto, in order to overcome the hurdle of high housing prices. In regions such as Brampton, Edmonton and Ottawa, sharing a single-family home between two families, dividing the floors between them or children seeking financial support from parents for down payments are becoming more common practices.
“All levels of government must work together to find a solution to Canada’s inventory issue, as the market will remain elusive for many otherwise,” says Elton Ash, regional executive vice-president, ReMax of Western Canada.