Why Toronto Housing Prices Are on the Rise

Toronto housing prices have been wild over the last couple of years, and it’s hard to keep track of what started this beyond just blaming it on the pandemic or people’s panic for personal space.

Housing markets across Canada are looking wild, and there’s no way to predict how this will all pan out. Nevertheless, here’s a rundown of why prices are rising so quickly.

People are Seeking Out Detached Housing

More people sought single home buildings in 2021 than in dozens of years.  2021 saw a 29% increase in prices of detached houses over 2020 in response to this, and as the frenzy continues, the prices continue to rise.  Townhouses increased only 5%, showing where peoples’ true interest is.  

Many want a single home property to have space outside where they won’t have to spend time around those who aren’t from their same household.  Although this may feel like a small reason to spend millions of dollars on a home, it’s something that’s been on the minds of a lot of people since the beginning of the pandemic.

Interest in Investing While the Prices Were Low

In the spring of 2021, when the housing market started sparking up, many buyers quickly began jumping into the market to try and catch real estate in Toronto before the prices skyrocketed. Unfortunately, this caused the prices to boost up even faster because of sudden scarcity, forcing the market into a buyers’ market that it’s still in.  

Many are Becoming Disillusioned with Renting

Toronto renters are sick of their rent seeming to arise randomly in large amounts and feel disrespected by the city council who’s not offering many solutions for it.  As many fled the city during COVID-19, there were hopes that this would drop the rent rates.

Instead, they increased, and many landlords set up more strict rules so that if anyone wanted to rent with them, they’d have to pay a large sum to do so.  This has turned many to getting a mortgage instead, which allows them to invest in their financial future.

The City’s Seen Booming Economic Growth

Despite the pandemic and the economic troubles of renters dealing with bad rental agreements: Toronto as a whole has grown immensely.  Multiple industries within the city have seen huge shifts.

For example, its film industry is growing quickly enough that it cannot employ all of the workers necessary for the work it needs to be done on projects.  The tech industry has also seen a huge boom in financial success since many app developers within the city could work on or create apps that helped make life easier during the pandemic.

These successes mean that more people have more money, leading to more potential buyers.

The Prices Will Continue Growing

Although the growth that Toronto has seen in the last year has been mind-boggling, there’s more growth still coming. So whether you want to invest now to start building value, or you’re trying to decide when to sell, the Toronto housing market has been an interesting rollercoaster for all to watch over the last couple of years.

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