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Home Affordability

Toronto Neighbourhoods: Where Buying a Condo Outshines Renting in Spring 2023

Daniel Crook by Daniel Crook
May 24, 2023
in Affordability, Canada, Condominiums, Toronto Real Estate
Reading Time: 3 mins read
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Towards the end of 2022, when many buyers were hesitant to dip into the market because of rising mortgage rates, renting was the more attainable option for some. Buyers looking for a home that were put off by the greater cost of borrowing moved into the rental market as a solution until prices stabilised or began to fall. As we move toward the halfway point of 2023, home prices have started to climb again in part due to the lack of supply and high demand.

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However, the question of whether it’s more affordable to buy a home and pay the monthly mortgage or to rent remains. To find out, we analyzed data provided by the Toronto Regional Real Estate Board to learn which neighbourhoods in the city would be the most affordable to purchase a home in or whether renting is the way to go.

  • Read: Sales Far Outpacing Supply Creating An Ever-Tightening Market: CREA

Rent is More Affordable in 14 out of 35 Neighbourhoods

Across Toronto as a whole, it’s only slightly more expensive to buy than it is to rent. A buyer would spend $68 more per month on their mortgage payments if they bought a condo apartment at the average price of $726,664. Extending the amortization period over 30 years as opposed to 25 would bring monthly payments down and make mortgage payments $221 less a month compared to the price of rent. 

21 neighbourhoods across Toronto have more expensive mortgage prices, but a few are only slightly higher than the price of renting. Five of those are within $100 of the rental price per month, and by amortizing over 30 years, all would be more affordable than renting. C12 (York Mills, Bridle Path, Hoggs Hollow) is the most expensive neighbourhood to buy a condo apartment in, where a mortgage will cost $2,310 more per month than renting. 

Only four neighbourhoods have mortgage payments costing $1,000 more than rental payments, C12, C04 (Bedford Park-Nortown, Lawrence Park, Forest Hill North), C09 (Rosedale, Moore Park) and E02 (The Beaches, Upper Beaches). You would only have to pay at most $486 a month more on your mortgage in any other Toronto neighbourhood.

  • Read: Discover the Most Popular Price Range Among Toronto Condo Buyers

Neighbourhoods Where You’re Better Off Buying

Fourteen neighbourhoods have less expensive mortgage payments per month. The smallest gap is in C01 (Downtown, Entertainment District, City Palace, Liberty Village) where mortgage payments are $26 cheaper. W09 (Willowridge-Martingrove-Richview) is the neighbourhood with the largest gulf in prices, with rent $1,006 higher, where buyers would pay $2,156 a month on their mortgage. The most affordable home price is in E10 (The Beaches, North Beaches), where the average price of a condo apartment is $468,160 and monthly mortgage payments would be $2,029, $256 a month cheaper than renting. 

Whether you’re looking to buy or rent, give us a call today! We can help find the perfect home to meet your needs. 

Considering a condo in Toronto?
Contact us today to speak to a Realtor in your area

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Surging Condo Prices: Toronto Region’s Q1 Growth Revealed

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Daniel Crook

Daniel Crook

Daniel Crook is a Content Marketing Specialist at Zoocasa. Daniel’s insights provide home buyers and sellers with knowledge of local and national markets to aid them in their real estate pursuits. Daniel covers a multitude of topics, ranging from mortgages to local market trends, as well as data-driven reports uncovering national trends. His work has been featured in outlets such as BNN Bloomberg, CTV News, the National Post and the Globe and Mail. You can find all his latest insights on the Zoocasa blog.

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