Who’s Living Where and Why?

By Penny Munoz

Are new home buyers being forced out of the city? A recent RBC-Pembina report indicates that the strong demand for detached and semi-detached homes in preferred GTA neighbourhoods is driving up the cost of homes, forcing many homebuyers to buy outside of these locations.

We spoke with Natascha Pieper, Director of Marketing at Minto to hear her take on who’s living where and why.

“For people who want their own outdoor private space, it’s more expensive [in the city]. Moving to the outskirts of the city, they can have the outdoor space with the amenities,” said Pieper. The study showed that home buyers valued (in order from most important): detached single-family homes, homes within walking distance to restaurants and other services, a 30 minute commute to work, access to frequent and rapid transit, and privacy. “Customers would rather spend a little more on the outskirts than on a less-than-prime location in Toronto.”

It appears that because of affordability, the housing industry is seeing a divide between single home buyers and families. While single buyers might be willing to sacrifice space for walkability to work, shops and restaurants, available real estate is simply too small (relative to the cost) for families. The Toronto Real Estate Board found that condo sales increased 25% in the past year, whereas the sale of semi-detached homes only increased by 7.8%. It’s no wonder that there are more condo sales when the cost of a three-bedroom single detached home in the same locations could easily cost over $2 million. According to Pieper, many families are choosing to buy in the suburbs because “They can afford a home in a nice, exclusive neighbourhood,” a longer commute to the city is the only downfall. “It’s a sacrifice, but kids can play, run around in the ravine.”

With rising city prices, Pieper predicts that more people will opt to buy on the outskirts of the city; a trend she says is already developing. Minto’s low-rise Longbranch development in Etobicoke can be held as a testament. The community offers a great array of amenities including restaurants, shopping, fast and efficient public transportation and access to the 400 series highway. With beautiful parks and conservation areas, this is exactly the kind of community that families are looking for. Longbranch sales exceeded expectations with an astounding 280 units sold in the opening month! Pieper recalls the line-ups down the street on the day of the preview, which was so successful that Minto ended up having a second preview event.

So, like always, it seems like people will want more bang for their buck. A condo still seems like the more affordable option when you compare prices, but when it comes down to space, an actual house is the way to go. What will happen to all the condominiums downtown? Pieper says that there is still definitely a demand for them, from professionals working in the city, to empty nesters looking to be closer to the action.

It all depends on what suits your needs. If you want a lawn and a personal inground pool, you know where to look. If you want to sell the car and walk to work, Toronto’s got you covered there too.