With the new year in full swing, we can officially say that 2016 was an incredible year for Toronto’s real estate market. Experts believe that the market will only get hotter as 2017 unfolds, but what does the future hold in the long term? Here are a few predictions:
In 50 Years, The Average Home Will Cost Over $4 Million
Less than fifty years ago, the average cost of a house in Toronto was $30,000. Now, this number is up to $622,000. If you told somebody in 1960 that their home would be worth over half a million – they would probably be in disbelief. Over the past few decades, housing costs in Toronto have risen an average 3.5 per cent every year. Population is expected to double in 50 years and the price of limited real estate will reflect this. As the prices of homes in Toronto rise, it is expected to become a city of renters.
A One Bedroom Apartment Will Rent For $1,600
Currently, the average price of a one bedroom apartment in the city is $1,100, and 45 per cent of households in Toronto are rentals. This number will increase as home ownership becomes more costly. Over the past 10 years, only 5 per cent of new builds have been specifically devoted to rentals. Rental housing in Toronto is projected to grow by 75 per cent in the next decade.
Neighbourhoods that Will be Desirable in the Next Few Years:
Mirvish Village – Honest Ed’s has sold and there are big plans in the works for the two-hectare site. The property will be transformed into a mixed-use retail, office space, pedestrian-only streets and cycling infrastructure. There will also be 900 + rental apartments.
Morningside –University of Toronto’s Scarborough campus sits on 120+ hectares of land which will soon be connected to the rest of the city via the Eglinton Light Rail Transit line. Planners intend to connect it to the surrounding community, transforming Military Trail into a pedestrian hub. They plan to add new condos and amenities at Ellesmere and Morningside, and create new park space near Highland Creek Ravine.
The Port Lands –Waterfront Toronto has a $17-billion revitalization plan that will take decades to complete. The once-empty lakeshore will be spectacular with 40,000 new residential units. This will also create 40,000 new jobs and public green space.
Junction Triangle – Bloor and Dundas is a transit hub, with a GO station that connects to the Landsdowne TTC station. The new Museum of Contemporary Art is set to open next year in an old aluminum factory and another 100,000 square feet in the plant will hold commercial and studio space. The area is big for mid-rise development which is unique because most other buildings going up seem to be either two stories, or sixty.
What changes do you think we will see in the near future? Are you planning on buying or selling in the city, and need some advice? Give me a call at 416.921.1112 and have your questions answered today!