Single-family house in Toronto sells for just $9,000

If you’re feeling flush, consider the single-family home in Forest Hill that rents for a mere $9,000. Just shy of $1,000 a month is $5,000 less than the monthly median monthly wage for someone…

Single-family house in Toronto sells for just $9,000

If you’re feeling flush, consider the single-family home in Forest Hill that rents for a mere $9,000. Just shy of $1,000 a month is $5,000 less than the monthly median monthly wage for someone in Canada’s most populous city of 1.8 million people.

The average price of a single-family home in Toronto just surpassed $1-million (Canadian; USD 1.2-million), the report said.

“The rental market has been exceptionally tight for a long time,” Sachin Rajpal, vice-president of Propel Communities, the owner of the single-family home, said in a statement. “Obviously, this means there’s been a limited number of rental listings.”

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Housing affordability is one of the top political concerns in Canada, where the average price of a detached home has reached a record high of $1.6-million, up 5 per cent from last year. Federal and provincial governments have said they are looking to tackle the issue.

A new government report released in January shows that renters in the Greater Toronto Area cannot afford to pay more than 30 per cent of their income toward housing. In November, over 29 per cent of GTA families were spending 30 per cent or more on shelter.

Commonly, investors and speculators buy houses, renovate them, and rent them out. Residents, who have temporarily moved away, end up paying rents they could never afford on their own. The expatriates are often referred to as “property speculators.”

READ MORE: What economists and politicians think about the need for housing rules to help renters

Overall, 78 per cent of renters in the GTA cannot afford to pay 30 per cent or more of their income on shelter. (The region includes Toronto, Vaughan, Mississauga, and communities in Durham Region.) In communities such as Forest Hill, where the single-family home listed for $9,000, over 60 per cent of residents living on social assistance are unable to afford shelter, according to city data from the 2016 annual report on urban poverty.

The housing crunch has also hit young professionals, with sales of newly built homes up as much as 37 per cent from 2016.

According to a report published on Tuesday by Urbanation, the average single-family home in downtown Toronto, in the 416-area code, is now selling for between $2.7-million and $3.6-million (Canadian; USD 2.7-million). After the previous peak of $3.6-million in 2014, the current pace is the second-highest in the last 10 years of urban housing figures from the real estate research firm.

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READ MORE: Toronto condo prices top $1-million in 13 of 17 postal codes

“We have seen a surge in new supply,” the report said. “Combined with continuing demand, new supply is driving up existing home prices.”

Of the newly completed homes sold in the 416-area code, 95 per cent went to buyers under the age of 45, and over 50 per cent of the buyers were first-time homebuyers. While 90 per cent of the buyers were earning between $100,000 and $150,000, 15 per cent earned more than $200,000 and 17 per cent made over $300,000.

This story was produced as part of a partnership with City Desk and Report on Small Business.

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