Condos in a pocket of the east end that includes Leslieville, Riverside, and Little India are some of the least affordable anywhere in Toronto, according to a recent report.
Zoocasa, a Toronto-based real estate listings website, looked at how average condo prices in 35 neighbourhoods compared to the citywide average of $602,804 as reported by the Toronto Real Estate Board. The company also considered the city’s median income in calculations.
“The whole purpose of the study was just to highlight how local real estate conditions are in Toronto,” said Penelope Graham, managing editor of Zoocasa.
When grouped together as a region, Leslieville, Riverside, and Little India is the fourth least affordable market in the city, based on Zoocasa’s findings. The average price of a condo in the area in May was $768,234. A household would need an income of $122,720 to afford that, assuming a 20-per-cent downpayment, Zoocasa said.
In terms of unaffordability though, the Rosedale-Moore Park market took the cake with an average price of $966,133, which requires a household income of $154,332 to finance. Not far off was York Mills, Bridle Path, and Hoggs Hollow, a local market where condos run buyers an average of $898,788. To qualify for a mortgage at that price, Zoocasa said a household income of $143,574 and downpayment of 20 per cent are needed.
Yorkville, Annex, and Summerhill followed at an average condo price of $872,506 and minimum required income of $139,376. “The first three [unaffordable markets] aren’t surprising,” said Graham. “That’s luxury inventory to begin with. However, in the case of Leslieville, Riverdale and Little India, supply, or lack thereof, is a factor propping up the market, Graham specified.
“Looking into the actual sales conditions for condos, there isn’t a lot of condo stock in those areas,” she said. Graham points to May’s TREB data, which reports that 17 condo apartments changed hands while just 18 new listings appeared on the market. “That on its own is an extremely tight sellers market,” Graham added.
The types of condos available in the area also drives prices up. Looking at Leslieville, Graham noted how there were more lofts and units in mid-rise buildings than in some other Toronto submarkets, where you might find cheaper high-rise condos.
Graham said it was “disheartening” that the study suggests single-income households are priced out of a number of markets explored.
The median income for a Toronto household was $65,829, according to the 2016 Census. With that income level, buyers would be priced out of all but 10 local markets in the study, including the Beach and Upper Beach.
Condos in the Beach area average $655,958, meaning a homeowner-hopeful needs to take home $104,785 annually.