Toronto Dominion Bank has published a report which found the cost of renting or owning a home in Toronto is becoming unaffordable for many residents.
Canada’s average home price is a little over $400,000, but Toronto’s values climb as high as $575,000. This wide gap in prices leads experts to think that the country is “in danger of becoming the New York City of the north.”
They also believe there is “no end in sight” to the housing bubble in Toronto while they maintain prices are at least 10% up than expected.
These stands are contrary to how real estate agents view the city’s housing market, arguing that as long as demand continues to overtake supply, prices will continue despite modest cooling.
"You're dealing with a huge sticker shock and a growing gap between those larger properties and the smaller ones," said Derek Burleton, TD Bank's deputy chief economist.
The report also points its fingers to the boom in condo construction, saying it is partly to blame, “at the expense of more single-family homes and townhouses.”
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