As home sales and selling prices continued to edge upward in Toronto throughout February, prospective buyers operating under a tight budget might've found themselves wondering which neighbourhoods in the city offered the best bang for their buck.
The average price for a detached home in the city currently rests at $1,657,026, representing a notable 3.5 per cent decrease from the previous year. However, there are still many neighborhoods where buyers can find prices below this still-high benchmark.
Real estate listing agency Zoocasa recently mapped out home prices across 35 neighbourhoods in Toronto to find out which areas prospective buyers could buy a detached home below the city average.
All average detached home prices were sourced from the Toronto Regional Real Estate Board (TRREB), and mortgages were calculated assuming a 25-year amortization period and a 4.84 per cent fixed five-year mortgage.
Toronto neighborhoods where detached home prices are less than the city average. Map: Zoocasa.
The study found that the most affordable neighbourhood in Toronto is Rockcliffe, Smythe, Kellesdale and Eglinton West, where the average home price of $1,028,669 in February 2024 was $628,357 below the city average (though still notably over the $1 million mark).
The second most budget-friendly neighbourhood in the city is Rexdale, Kipling, West Humber and Clairville, where the average detached home price of $1,029,675 is still $627,351 below Toronto's average.
Other affordable neighbourhoods that offer average home prices below the T.O. average include Dorset Park and Kennedy Park, Morningside, Woburn, Bendale, Malvern and Rouge, and Birchcliff.
Toronto neighborhoods where detached home prices are lower than the city average as of February 2024. Photo: Zoocasa.
"For houses near the Toronto benchmark average within downtown, two neighbourhoods stand out: Regent Park, St. James Town and Corktown, as well as Leslieville, Riverside and Little India," the report added.
"Leslieville, Riverside and Little India boast homes averaging $1,632,400, the closest to the average price in the city. With a minimum down payment of 20 per cent, the average mortgage will likely cost around $7,477 per month."
On the other side of the spectrum, the study found that prospective buyers in York Mills, Bridle Path and Hoggs Hollow area can expect to dish out $2,639,224 above the city average, as the average detached home price stands at a staggering $4,296,250.
Unsurprisingly, the Yorkville, Annex and Summerhill neighbourhood also boasts exorbitant home prices, with the average house price of $3,307,600 running buyers $1,650,574 above the city average.
"In Toronto's central neighbourhoods, one-third of houses surpass the $2 million mark, reflecting the city's demand for move-in-ready detached houses," the report found.
"Through this analysis, it's clear that there’s a significant price gap between the most affordable and the most expensive neighborhoods for detached homes in Toronto. While houses in the cheapest neighbourhood average $1,028,669, those in the priciest neighborhood average $4,296,250. It's a $3 million dollar difference worth watching."
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