High housing costs are driving an exodus of households from the Greater Toronto Area, in some cases to places as far-flung as northern Ontario or even Alberta.
But new analysis from Wahi, a Canadian real estate listings website and app, suggests homebuyers don’t need to look that far to find considerably cheaper real estate.
“Expanding your house hunt to areas just beyond the GTA’s borders could save you hundreds of thousands of dollars without sacrificing access to everything the Toronto region has to offer,” says Wahi Economist Ryan McLaughlin.
Wahi’s latest analysis compares single-family home prices in the GTA with seven neighbouring cities and counties: Dufferin County, Hamilton, Kawartha Lakes, Northumberland, Peterborough County, Simcoe County, and Wellington County.
According to Wahi’s analysis, each of these seven GTA-adjacent markets is considerably more affordable than the GTA itself. There, the median price of a single-family home, including detached and semi-detached properties as well as row and townhouses, was $1,145,000 in the second quarter.
In comparison, the median price of a single-family home in seven communities bordering the GTA ranges from $650,000, in Peterborough — which is about the median price of a GTA condo ($675,000) — to $840,000, in Wellington. Not only are houses more affordable in these communities, but in each of them prices are either flat or continuing to decline.
Single-Family Home Prices in Select Communities Outside the GTA
“Research suggests that many GTA homebuyers want single-family homes, and if local prices are too high, they’re willing to leave the region altogether,” says McLaughlin.
In fact, on an annual basis, 80,000 more people have been departing from the region than entering it from other parts of Canada in recent years, according to a recent report from the Missing Middle Initiative.
Leading the charge are adults in their late 20s and early 30s, particularly those with young children, the Missing Middle Initiative found. Rather than compromising with the smaller condos that have proliferated throughout the GTA, these households are widening their search for affordably priced family-sized homes.
“The good news for these homebuyers is there are more affordably priced single-family options right next door to the GTA,” McLaughlin continues. “As more companies mandate returns to the office, homebuyers who previously moved far away from the region may opt to return to one of the GTA’s neighbours instead, which could contribute to increased demand.”
The Most Affordable Cities and Towns Just Outside the GTA
Wahi also looked at home prices at the municipal level to find the most affordable cities and towns within each of the seven communities that neighbour the GTA. These municipalities vary in character, from Trent Hills, a rural township of approximately 14,000, up to the urban centre of Hamilton.
Lowest Single-Family Home Prices in 7 Markets Neighbouring the GTA
Although neither Guelph nor Barrie were the most affordable in their respective counties, homebuyers seeking city living may want to consider these markets. Both boast median house prices well below the GTA’s. The median price of a single-family home in Guelph was $845,000 in Q2, up 1 per cent from a year ago, while Barrie had a median price of $736,988, down 4 per cent on a year-over-year basis.