Zoocasa - Looking for the perfect place to call home involves considering various factors that fit your lifestyle and budget. Is there a park or public transportation close to your place? Are enough cozy cafes, tasty eateries, and convenient grocery stores nearby? And let’s not forget about the daily grind – how long will it take you to get to work or drop off the little ones at daycare or school?
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Of course, there’s the ever-important question of affordability, too.
Whether you’re buying or renting, the cost of mortgage payments or rent can heavily influence your decision on where to live. Determining whether owning or renting is more cost-effective in your area is essential, especially if you’re working towards saving for a down payment or want to ensure you get the most bang for your buck.
If you’re in the market for buying or renting a home in Toronto and need insights into the most budget-friendly neighbourhoods, look no further.
Using data from the Toronto Regional Real Estate Board, we calculated the average rent for apartments in the city then we compared this to the average cost of condo apartments across the same neighbourhoods to learn which was more affordable. Here’s how monthly mortgage payments compare to monthly rent across The Six.
Renting Tops Affordability in 27 of the 35 Neighborhoods
Only nine of the 35 Toronto neighbourhoods have average monthly mortgage payments lower than rent, making renting the most budget-friendly option in 77% of neighbourhoods.
In the affluent York Mills—Bridle Path-Hoggs Hollow neighbourhood, renting is significantly more affordable than paying a mortgage, where a mortgage payment is $6,273, and the average rent is $3,642. That’s a difference of $2,631!
Likewise, in Rosedale-Moore Park, the average monthly mortgage payment is $1,900 more than the average rent. In both areas, average condo prices exceed the $1.4 million mark.
Meanwhile, among Toronto neighbourhoods, Black Creek and York University Heights offer the most budget-friendly average mortgage payment at $2,281.
Furthermore, the mortgage payment in Black Creek and York University Heights is approximately $20 lower than the average rent in the most affordable neighbourhood, Rockcliffe-Smythe-Keelesdale-Eglinton West, which is $2,298.
1 in 5 Neighborhoods Share Similar Rent to Mortgage Costs
In seventeen percent of neighbourhoods, the price difference between the mortgage and rent payments is within the $100 mark. For example, in High Park-Swansea, Roncesvalles, and Parkdale, the difference between owning and renting is only $10 a month, yet renting remains the more cost-effective choice. Similarly, the average rent and average monthly mortgage costs in Yorkville, Annex, and Summerhill have a difference of $23.
The most significant price difference is found in the Willowridge-Martingrove-Richview neighbourhood, where an average mortgage payment saves you a whopping $549 compared to renting.
Ultimately, the decision to buy a condo or rent is highly personal. However, weighing the pros and cons of each option is crucial, especially considering the current prices.
Renting vs. Buying: Weighing Your Options in Toronto’s Condo Market
Renting offers peace of mind knowing you’re not responsible for unexpected housing expenses. However, it’s essential to be aware that any rental unit in Toronto constructed after November 15, 2018, is not subject to provincial rent control, meaning landlords cannot increase rent as they see fit. This can be tricky, especially if a renter is also saving for a downpayment.
While owning a home can provide the opportunity to build equity, it is essential to consider the additional expenses that come with it. These may include property taxes, special assessments, and costs associated with home renovations, such as repairing or replacing major home appliances
By analyzing these prices, you can better understand the rental and ownership costs in any Toronto neighbourhood you may consider your home.