Dreams of owning a home in Toronto continue to move further and further out of reach for most of the city's residents, and it looks like the feat will be made even more difficult to achieve in the years to come. 

Using an average rate of increase of 5.6 per cent, a new Zoocasa report projects that Toronto homes will reach an average selling price of $2 million by 2034. 

Source: Zoocasa. 

According to the Toronto Regional Real Estate Board's March 2024 report, the MLS Home Price Index (HPI) composite benchmark was up by 0.3 per cent year-over- year, with the average selling price increasing by 1.3 per cent to $1,121,615.

Since 2020, houses in Toronto have consistently exceeded the million-dollar average selling price, and in the past two years, the average home prices in 43 per cent of Toronto's neighbourhoods have surpassed $2 million. 

Even some of the city's most affordable neighbourhoods, including Rockcliffe, Smythe, Keelesdale, and Eglinton West, witnessed a peak in the average single-detached home price of $1.6 million in February 2023.

Source: Zoocasa. 

Toronto's High Park-Swansea, Roncesvalles, and Parkdale neighbourhoods — which also rank as some of the most affordable areas within the list of the city's most expensive neighbourhoods— had average home prices exceeding $2 million by 2022. 

However, in some affluent Toronto neighbourhoods, such as York Mills, Bridle Path, and Hoggs Hollow, a $2 million home would be considered a "steal" in the years to come, since these areas have witnessed skyrocketing prices well beyond the $3.6 million mark. 

Source: Zoocasa. 

With the anticipation that the average Toronto home will cost $2 million in just 10 years, Zoocasa notes that interest rates will play a significant role in how pricing turns out. 

"As rates come down, home prices go up,"  the report reads. 

Source: Zoocasa. 

"In the case that rates do begin declining this year, we can anticipate a corresponding price increase in the market overall, meaning we can reach this multimillion-dollar average home value even faster."