June 3 2010
House prices are going up and this could mean trouble for owners and renters. The Globe and Mail’s Terrence Belford analyzes the trend in his article, “The little matter of affordability“.
According Belford’s article, anyone owning a detached bungalow in the Toronto area can expect to see about 50% of their pre-tax income go towards home-ownership costs such as mortgage payments, property taxes and utilities.
For renters, the situation is similarly concerning. TREB says that at the end of April the average rent for a one-bedroom apartment was $1463 a month and $1909 for a two bedroom, up 5 per cent from last year.
Belford predicts that a two bedroom downtown apartment may cost $3000 per month in five years time – wow.