toronto housing bubble

Toronto ranked 3rd biggest real estate bubble in the world

It's not news that Toronto's housing market is getting a bit... out of hand — but a new report shows that it's one of the worst on the planet. 

A new study from the UBS Global Real Estate Bubble Index has found that, of its surveyed cities, Toronto is third in the world for risk of a bubble. 

A real estate bubble forms when the prices of homes are inflating past the inflation of income—something many in Toronto are probably familiar with. 

ubs housing bubble index

Toronto only trails Hong Kong and Munich in cities most cited for bubble risk. Image from UBS Group.

The report found that housing prices in most major world cities have increased by an average of 35 per cent over five years, but incomes are not increasing at nearly the same rate. 

Toronto ranked behind only Hong Kong and Munich, Germany, which ranked first and second, respectively. 

According to the report, prices have stabilized in Toronto over the past year or so. Rent control, taxes on foreign purchases, and more government control may be to credit.

Higher mortgage costs and tighter lending control can also limit the bubble for the time being. 

Lead photo by

Roozbeh Rokni


Latest Videos



Join the conversation Load comments

Latest in Real Estate

Historic Toronto mansion chopped up into 15 apartments now selling for $5.4 million

Realtor's braggy ad about listing Doug Ford's Toronto house backfires hilariously

This $4 million Toronto condo looks like it comes straight out of a magazine

Retail-lined community could be the next hot destination for major Toronto street

Someone is trying to sell a small fraction of their Toronto condo for $20K

Almost half of renters in Canada have accepted that they'll be renting forever

Condo towers and new park to replace luxury auto dealership in Toronto

This Ontario city has the most overvalued real estate market in Canada