It’s no secret that Toronto is home to some pretty pricey real estate, and a new city report reveals exactly which neighbourhoods have the highest amount of luxury homes.
The report comes as part of the City Council Budget Committee’s exploration into possibly raising the Toronto luxury home land transfer tax — a move that could bring in more than $18 million in revenue this year.
The City performed an analysis of 2016 home valuations — adjusted for 2021 pricing — all over Toronto and broke it down by wards, revealing which areas have the highest concentration of luxury homes.
Although the proposed raised land transfer tax — the details of which have not been determined — will likely target homes that are sold either above $2 million or $3 million, the report took a look at homes valued above $1.4 million and $2 million.
The area with the most homes over both valuations was Ward 15, Don Valley West, which includes neighbourhoods like Leaside, the Bridle Path, Moore Park, and Lawrence Park. A staggering 66.6% of the ward’s homes are valued above $1.4 million, and 45.3% are above $2 million.
Coming in with the second-highest amount of luxury homes was Ward 8, Eglinton-Lawrence. It has 14,571 homes valued at over $1.4 million, making up just under half of the homes in the area. In the over $2 million range were 8,844 homes, which account for just shy of 30% of the homes in the ward. This isn’t too surprising considering it’s home to the affluent Forest Hill North.
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The ward with the fewest homes that surpassed the high valuation marks was Ward 7, Humber River-Black Creek, with just 187 homes above $1.4 million and 20 homes above $2 million, comprising .9% and .1% of the ward’s housing, respectively.
Ward 7 includes the neighbourhood of Jane and Finch, which has seen extremely high real estate appreciation rates over the past year, according to a recent Strata.ca report.
The report also found that there’s been a “softening of the luxury sales market” on homes valued over $2 million and concluded that a new land transfer tax on luxury homes could have negative effects on the housing marking by incentivizing “buyers and sellers to transact below the cutoff.”