These are the best Toronto neighbourhoods to buy and rent a condo

Aug 26 2020, 10:05 am

The COVID-19 pandemic has deeply impacted the real estate market, especially when it comes to condo rentals in Toronto.

According to a recent report by Zoocasa, the pandemic resulted in a “staggering increase” in the supply of available condo rentals in the city.

Using data from the  Toronto Regional Real Estate Board (TRREB), Zoocasa compared the price-to-rent ratio (PTRR) for 35 neighbourhoods across Toronto to highlight where it may be better to rent a condo apartment, and where it may be better to buy.

The report shows that on average the purchase price of a condo is equal to 22 years of rent. With the average condo price of $661,458 and the average monthly lease rate of $2,501, the price-to-rent was 22.

Of the 35 neighbourhoods included in Zoocasa’s analysis, 22 had a PTRR of at least 21 years, indicating that overall, renting a condo apartment may currently offer more value than purchasing one in the majority of Toronto neighbourhoods.

Top 5 Neighbourhoods worth buying a condo: 

1.E03 – East York, Danforth Village

  • Condo purchase price: $434,196
  • Condo lease rate (monthly): $2,415
  • PTRR: 15

2. E10 – West Hill, Centennial Scarborough

  • Condo purchase price: $352,500
  • Condo lease rate (monthly): $1,933
  • PTRR: 15

3. E11 – Malvern, Rouge

  • Condo purchase price: $405,518
  • Condo lease rate (monthly): $2,024
  • PTRR: 17

4. W05 – Black Creek, York University Heights

  • Condo purchase price: $434, 340
  • Condo lease rate (monthly): $2,140
  • PTRR: 17

5. W10 – Rexdale-Kipling, West Humber-Claireville

  • Condo purchase rate: $438,047
  • Condo lease rate: $2,124
  • PTRR: 17

Zoocasa

Top 5 Neighbourhoods worth renting a condo: 

1.C09 – Rosedale, Moore Park

  • Condo purchase price: $1,307,658
  • Condo lease rate: $2,501
  • PTRR: 35

2. C12 – York Mills, Bridle Path, Hoggs Hollow

  • Condo purchase price: $1,257,600
  • Condo lease rate: $3,108
  • PTRR: 34

3. E01 – Leslieville, Riverside, Little India

  • Condo purchase price: $868,112
  • Condo lease rate: $2,202
  • PTRR: 33

4. C02 – Yorkville Annex, Summerhill

  • Condo purchase price: $1,119,482
  • Condo lease rate: $3,020
  • PTRR: 31

5. C08 – Regent Park, St. James Town, Corktown

  • Condo purchase price: $734,172
  • Condo lease rate: $2,239
  • PTRR: 27

Overall, when looking at condos in central Toronto neighbourhoods like downtown, midtown and North York, it may be better value to rent.

But, east and west end neighbourhoods offer a chance for renters to possibly own property. The two strongest cases being East York, Danforth Village and West Hill, Centennial Scarborough.

It’s important to note that looking at price-to-rent ratio is not the only factor to consider when deciding to buy or rent a property. These decisions are also strongly based on personal goals and desired lifestyle choices.

So while Toronto may seem unattainable for condo ownership, there are pockets in the city offering possibilities.

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