Toronto home prices climbed by almost 500 per cent in the last two decades
Skyrocketing home prices in Toronto have been making headlines for years, but we are now firmly established as one of the most overvalued housing markets globally, a grim statistic of rising inequity that's nothing for us to brag about.
According to a recent report by major Swiss financial institution UBS, six cities are now at crisis-level housing bubbles, and two of them are right here in Canada. Toronto ranked the second-worst bubble in the world in 2021, and it was hard to be shocked by a headline that most could see brewing for years.
And UBS isn't the only institution shining a light on a bubble that could be on the verge of bursting. A report from Moody's claims the country's housing market is currently overvalued by as much as 91 per cent, cities like Toronto and Vancouver helping to fuel the rising prices.
An alarming chart published by the National Post in November helps to illustrate just how bad the problem of rising housing costs is in Canada, growing by a staggering 375 per cent nationwide in just the last two decades.
And as you'd expect, it's far worse in Toronto, where home prices grew by an unbelievable 490 per cent during that same period.
For reference, the Toronto Regional Real Estate Board's historical statistics reveal an average selling price of around $251K twenty years ago. A far cry from the well over $1.1 million the average home will cost you today.
On a graph, it looks like a near-vertical line, but in reality, it means homeowners are growing steadily wealthier while buying a home becomes harder for those who don't already have a piece of the pie.
And while it may seem bad in Toronto, there are somehow many cities with home prices considered even more overvalued than the 416's rate of 39.53 per cent.
Moody's states that all five of the worst-ranked Canadian cities for overvalued home prices were all right here in Ontario, with Niagara-St. Catherines leading the pack, considered to be overvalued by a whopping 90.8 per cent.
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