Canadian condo owners looking to make the jump to a single-family home are facing a daunting challenge in today’s market.
Even in theory, transitioning from a condo to a house is no small task, but market conditions over the last few years have made upsizing even more challenging.
Over the past decade, both apartments and houses have doubled in price. More recently, interest rates and increased demand have led to rapidly skyrocketing prices and eroding affordability. If getting a foot in the market is hard for many prospective buyers, upgrading to a larger space is nearly impossible.
But how far-fetched is the notion of upsizing in today’s market, really? According to a new study by Point2, it depends on where you live.
When it comes to the least affordable cities, it’s no surprise that urban centres in British Columbia and Ontario offer the bleakest picture.
Vancouver leads the pack with the largest price discrepancies between condos and single-family homes, reaching a staggering 153 per cent price difference. Vancouver is followed closely by Richmond Hill, Ontario (149%), Oakville, Ontario (139%), and Surrey, British Columbia (132%).
The average house in Vancouver is approximately $1,243,300 more expensive than the average condo. According to Point2, it would take a condo owner 16 years of saving their entire salary to afford the difference.
Surprisingly, Toronto is not the most challenging city for upsizing in Ontario. Homes in Toronto cost around $761,770 more than condos, but compared to Vancouver, that number might not look so bad. Even the cities surrounding Toronto have heftier price tags than within the city centre, with Markham and Vaughan boasting a difference of $835,600 and $789,000 respectively.
In terms of the most affordable cities for upsizing, Trois-Rivières, Quebec and Halifax, Nova Scotia stand out. Homes in both cities are only 19 per cent more expensive than condos – translating to a $44,000 difference in Trois-Rivières and $84,400 in Halifax.
Notably, seven out of 14 cities where upsizing is ‘achievable’ are located in Quebec, making it the best province for upsizing overall. However, Ontario condo-dwellers who don’t want to move to a different province might have better luck in Kingston and Windsor.
