As a whole, the City of Toronto is not the best place to buy real estate. But if you’re looking for a home in the city, some neighbourhoods offer more value than others.
MoneySense’s Where to buy Real Estate in Canada 2022 report has determined the best, and worst, Toronto neighbourhoods to buy property in.
Created in partnership with Zoocasa, neighbourhoods across the city were ranked on several factors, including the benchmark home price as of December 31, 2021, one, three, and five-year prices growth, and the percentage of households with children.
Each neighbourhood also received a score out of five based on its value, economics, and accessibility. With five being the highest, the scores represent value for money, levels of income and education, and ease of travel by foot, bike, and public transit, respectively.
Although home prices in Toronto remain high — the average was $1,023,029 in December 2021 — the city’s real estate market is heading for more balanced territory.
“Toronto is considered the cultural centre of Ontario thanks to its active music, theatre, and film scenes,” MoneySense said.
“The number of thriving industries in Toronto has contributed to its growth, and its population continues to increase in spite of rising housing and rent prices.”
Here are the top three Toronto neighbourhoods to buy real estate in.
#1 – Mildenhall
Mildenhall was deemed “Toronto’s hottest neighbourhood,” earning a value score of 3.8, a nearly-perfect economics rating of 4.7, and an accessibility score of 2.9.
The average selling price of a home in the area was $3,024,167 in December 2021, representing a 74% increase from a year earlier and a 113% jump from the end of 2018.
Mildenhall is conveniently located near Lawrence Avenue East and Bayview Avenue but offers a suburban feel thanks to its large properties and spacious homes. Close to good public and private schools, 42% of households in the area have children.
#2 – Thorncliffe Park
Thorncliffe Park nabbed second place for the second year in a row. As of December 2021, the average selling price of a home in the neighbourhood was $645,224 — 36% higher than in 2018. Growth has slowed recently, though, with prices only 6% higher than in 2020.
Situated along the Don River corridor, the neighbourhood is popular with commuters. It’s also packed with good schools, leading 45% of households to have children. Thorncliffe Park earned a value score of 3.9, an economics score of 4.3, and an accessibility rating of 3.9.
#3 – Highland Creek
MoneySense chose Highland Creek as the third-best neighbourhood to buy a home in Toronto. As of December 2021, the average selling price in the neighbourhood was $1,270,000, a 29% increase from 2020 and a three-year jump of 42%.
The area earned a value score of 3.8 and an economics rating of 4.3, but only scored a 2 in terms of accessibility. Fifty-six per cent of households have children.
Located near its namesake river, Highland Creek has a quaint, small-town feel. Scenic walking trails can be found throughout the neighbourhood, and the University of Toronto’s Scarborough campus is close by.
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The report named Malvern as the worst neighbourhood in Toronto to buy real estate. Agincourt North placed just above it, and Steeles was the third-worst.