David George-Cosh – Wall Street Journal

The dream of owning a new home with a yard and white picket fence is fading for many in Toronto, thanks to a widening price gap between houses and condos.

The price gap between buying a new “low-rise” home versus a new “high-rise” home has widened to about $194,000, from about $75,000 back in 2011, according to George Carras, president of Realnet Canada Inc., a Canadian real estate research firm.

Comment: And people wonder why condos are so popular… not always because people prefer them, but they are the only home they can afford.

A low-rise home is defined by Realnet as a newly built detached, semi-detached home or town house. A high-rise home is an apartment condominium, loft or stacked townhouse.

In April, the cost to buy a new low-rise home in Canada’s biggest city was $627,933, up 6% from the same month last year, while the price of a new high-rise home was relatively unchanged at $433,132, according to a report by Realnet.

There are also less low-rise homes being built, as Toronto policymakers have decided that the best way to handle an expanding population in North America’s fourth-largest city is from the condo market rather than new houses, Mr. Carras said.

“Toronto’s housing market is getting taller, smaller and more expensive,” he says.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto Realtor with Century 21 Regal Realty. He did not
write these articles, he just reproduces them here for people who are
interested in Toronto real estate. He does not work for any builders.
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