It’s accepted wisdom that when it comes to Toronto’s pricey condo market, it’s cheaper to rent than own. But in some neighbourhoods, that may no longer be the case.
While the average price of a condo continues to climb, so does average rent, leaving many Toronto residents with few appealing options.
According to a new report from Zoocasa, the average price for a Toronto condo now sits at an all-time high of $603,480, up 6.5 per cent year-over-year, while rental vacancy rates sit at a historic low of under 1 per cent.
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Zoocasa compared the average monthly rent and average monthly mortgage payment in 35 Toronto neighbourhoods, and found that in a whopping 21 neighbourhoods, the monthly cash outflow from paying a mortgage is lower than paying rent.
Of those, Black Creek, York University Heights was the most affordable, with an average monthly rent of $1,939 versus an average monthly mortgage payment of $1,333. Willowridge, Martingrove and West Hill, Centennial Scarborough also topped the list, with a monthly savings of $600 and $576, respectively.
“When you look at the neighbourhoods where there’s a greater discrepancy between monthly rent and mortgage payments, there are some common factors that emerge,” Zoocasa managing editor Penelope Graham tells Livabl. “They are all in the western and eastern extremities of the city, and not as conveniently located in terms of transit.”
Graham says that these condos, which fall under the $400,000 price range, could be attractive options for would-be buyers trying to enter the expensive Toronto market.
“For those who are hoping to buy a condo, these are neighbourhoods that might be a good fit,” she says.
For a closer look at which Toronto neighbourhoods are cheaper to own a condo than to rent, check out Zoocasa’s infographic below.