New MPAC report paints a grim picture for budget-conscious buyers
The search for affordable housing in Ontario is becoming increasingly challenging, with new data from the Municipal Property Assessment Corporation (MPAC) highlighting a significant decline in homes valued under $500,000.
The report reveals a shift in the residential property landscape, underscoring the scarcity of such homes, particularly outside the Greater Toronto and Hamilton Area (GTHA). As of December 2023, the median home value in Ontario reached $765,000, while the GTHA saw a median of $1,031,000, indicating a stark increase in property values across the province.
"Looking across the province, our data shows increases in home values across Ontario – even in smaller communities outside the GTHA," MPAC vice president Greg Martino said.
"The reality is that current home prices are a reflection of various economic forces at play. Factors like supply and demand, increased construction and labour costs plus inflation are all part of what's driving today's house prices.”
The data is particularly sobering for first-time buyers. In 2013, 74% of residential properties in Ontario were valued at less than $500,000, and 91% were under $750,000. Fast forward to today, those numbers have plummeted to 19% and 48%, respectively.
Affordable options under $500,000 are now mostly found in cities like Sudbury, Sault Ste. Marie, North Bay, Thunder Bay, and Windsor, while properties under $750,000 can be located in Ottawa, London, Kitchener, Kingston, Barrie, and Peterborough.
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Condominiums in the GTHA and Toronto have also seen a dramatic rise in value. In 2013, 88% of GTHA condos were valued under $500,000, a figure that has now dwindled to just over 11%, with the median value soaring to more than $645,000. Toronto's condo market mirrors this trend, with less than 11% of condos currently valued under $500,000, a steep drop from almost 85% a decade ago.
The report also sheds light on the escalating prices of semi-detached and townhomes, which have appreciated significantly. A decade ago, 94% of semi-detached and 97% of townhomes were valued at $750,000 or less. Today, those figures have dropped to 33% for semi-detached homes and 46% for townhomes. Detached homes have not been spared, with their median value jumping 128% from nearly $378,000 in 2013 to over $862,000 today.
Currently, 41% of detached homes across the province are estimated to be worth more than $1 million, a substantial increase from 6% a decade ago. In the GTHA, this figure is even more pronounced, with over 78% of detached homes now valued over $1 million, up from nearly 12%.
This data paints a challenging picture for potential homebuyers in Ontario, particularly those entering the market for the first time, as they face limited options and escalating prices across the board.
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