It’s no secret that housing affordability in Ontario’s biggest cities is eroding. After reaching a peak of $930k earlier this year, the average price of a home dropped down to $855,990 in October – lower, yes, but still out of financial reach for many Ontarians.
According to a new study by Point2, a price tag of $400k better reflects what the typical Ontario homebuyer can afford. The problem is, it’s nearly impossible to find homes around this price point anymore – and even if you can, it might leave you wondering exactly how much space you’d be paying for.
So, how much bang can you still get for your buck in Ontario?
According to Point2 data, prices per square foot in the province range between $302 and $1,013 – so it all depends on where you look.
As is tradition, the GTA is likely out of the question for homebuyers on a budget who’d prefer to have a bit of elbow room. $400,000 would barely buy a one-bedroom condo in Downtown Toronto, Oakville and Vaughn.
Downtown Toronto has the steepest price per square foot, with $400,000 totalling up to a tight 395 square feet. Oakville and Vaughn offer slightly larger shoeboxes for the same price, at 493 and 494 square feet, respectively.
While the GTA offers little affordability and even less space, moving away from Ontario’s largest business hub might not be an option for some buyers. Thankfully, although the benchmark price for a home in all of Toronto’s neighbouring cities is over $1 million, nearby suburbs offer a bit more living space.
If living in a sardine can isn’t your thing but you’d still like to live close to big city amenities, you might have better luck in Ottawa, where prices per square foot are less than $500. A price tag of $400,000 adds up to 815 square feet in the nation’s capital – over half the space of a similarly priced home in Toronto.
But what about buyers who value space over any other selling feature?
Per Point2, Thunder Bay, Chatham-Kent and Sudbury offer the most space for $400,000. Prices per square foot in these areas are as low as $300 – offering up to 1,325 square feet for half the price of an average Ontario home.
