Vancouver Vs. Toronto: Cost of Real Estate
Two of the largest cities in Canada are Vancouver and Toronto, and these two cities are coincidentally seeing a similar trend in both real estate prices and the influx of new residents. For individuals contemplating a move to either city a basic breakdown of prices and current trends is not only helpful, but it is also imperative.
Vancouver is a city where even the extremely wealthy are startled by the cost of living. Although the Bay City has gorgeous mountain views, breathtaking crystal clear water, and is the perfect fit for both outdoor enthusiasts and city dwellers, the price of real estate makes it almost impossible for the average middle class family to live in the city limits. In fact, the average cost of a 2 bedroom detached house in Vancouver currently fetches on average at or above $929,000. That means it costs nearly $1 million just to live in a traditional home inside the city limits. However, the sharp rise in the cost of real estate does make Vancouver a unique city that could offer up some serious investment opportunities for those with the liquid to buy up properties. Experts predict that 2014 will result in a ‘leveling out’ of real estate prices which could mean right now is not the best time to be buying.
Toronto contrasts Vancouver with its seemingly cheaper prices and job opportunities. Compared to Vancouver, the average price for a detached home in Toronto is a cool $686,688. That is nearly a $250,000 difference! Buyers who comparison shop simply based off the cost of homes would stop right there and start packing their bags for Toronto. But not so fast. Why is there a marked difference in the cost of living in these two cities?
The Difference in Price
Vancouver has recently become a sought after city because of the welcoming arms of the government allowing foreign investors into the market place. In turn, real estate companies cater to their new found ultra wealthy market and the middle class is squeezed. This has led to a dramatic price increase in homes in the city and has resulted in many ‘average’ families being forced out. Toronto on the other hand, is markedly cheaper and offers many benefits. The one thing Toronto doesn’t have, however, is natural beauty. Vancouver takes the cake in this department.
As the average home price increases in Vancouver every year it is hard to find a reason to settle down in the city, although if you are looking for a potential investment then the city could offer you a serious return (if you sell quickly). Toronto has its perks but in the end Vancouver will always be the city the wealthy and healthy call home.