The dream of owning an affordable home in Ontario is becoming increasingly challenging, according to new data released by the Municipal Property Assessment Corporation (MPAC).
Over the past decade, communities with homes priced under $500,000, and in some areas under $750,000, have significantly dwindled. This is shown in the Greater Toronto and Hamilton Area (GTHA)’s $1.031 million median home value compared to the province’s $765,000 (as of December 2023), and it’s pushing buyers to explore options farther outside the GTHA.
“Looking across the province, our data shows increases in home values across Ontario — even in smaller communities outside the GTHA,” Greg Martino, vice president and chief valuation and standards officer for MPAC, notes.
“The reality is that current home prices are a reflection of various economic forces at play. Factors like supply and demand, increased construction and labour costs plus inflation are all part of what’s driving today’s house prices.”
First-time buyers have limited options
In 2013, 74 per cent of Ontario’s residential properties were valued at under $500,000. However, this proportion plummeted to 19 per cent in 2023 (mainly found in Sault Ste. Marie, North Bay, Sudbury, Windsor and Thunder Bay). Similarly, homes under $750,000, once abundant, now constitute only 48 per cent of the market (mainly found in Kitchener, Kingston, Ottawa, London, Barrie and Peterborough).
Large jumps in GTHA and Toronto condominium values
Condominium prices in the GTHA have soared, with about 11 per cent of units priced under $500,000 today, compared to 88 per cent in 2013. Similarly, in Toronto, less than 11 per cent of condos are now priced below $500,000, highlighting the shrinking affordability in the city.
Prices of other property types increasing at unprecedented rates
Semi-detached and townhomes, once considered affordable options, have also witnessed substantial price appreciation. The inventory of semi-detached homes priced under $750,000 has plummeted by 61 per cent, with only 33 per cent available in this range today. Similarly, townhomes have seen a 51 per cent decrease in inventory below $750,000.
In 2013, the median value of a detached home in Ontario was approximately $378,000. Today, it has surged to over $862,000, with 41 per cent of detached homes estimated to be worth more than $1 million province-wide.
In 2013, the median home value for a detached home in the province was nearly $378,000. Today, that number has increased by 128 per cent to over $862,000.
For more information, see MPAC’s housing inventory map.
