Toronto Real Estate Is On Fire, But It’s Also Ontario’s Worst Performing Market

Toronto real estate prices are some of the fastest growing of any global hub, but it might seem slow at home. Canadian Real Estate Association (CREA) data shows Toronto is the slowest growing market in Ontario. Small cities are growing up to 3x faster, closing the gap between the county’s economic engine. 

Toronto Real Estate Prices Have Grown Over 28%

Toronto real estate prices have shown massive growth over the past few years. The benchmark price hit $1,188,700 in November, up 28.3% from a year ago. Any double-digit annual growth is considered very fast, but nearly a third higher? That’s huge and unprecedented for the city. Somehow that massive annual growth was the second slowest of any major market in Ontario.

On a medium term basis, Toronto real estate prices have also made a steep climb. A typical home has increased 67.8% over the past five years. Once again, the growth fails to impress in Ontario — landing it in last place of any major market. This says less about Toronto and more about the pace of home price growth across the province.

Ontario’s Cottage Country Outperformed Toronto Real Estate

Ontario’s cottage country is where the fastest growth in the province is happening. The fastest annual growth is in Bancroft, where the benchmark reached $471,200 in November — up 47.3% from last year. Brantford follows with a typical home reaching $710,900, up 40.7% over the same period. North Bay is in third with home prices at $376,800, up 40.2% from last year. If you didn’t notice, all three markets have seen prices rise by over a third in just twelve months. 

Ontario Real Estate Price Annual Growth

The 12-month percent growth in the benchmark price for major real estate markets across Ontario.

Source: CREA; Better Dwelling.

Home Prices Are Growing Up To 3x Faster In Small Cities

Over the past five years, smaller regions have outperformed Toronto. The top growth is in Bancroft, again, where prices have increased 165.6% from five years ago. London is in second with 159.4% growth over the same period. In third is Tillsonburg, which climbed 156.5% in just five years. Home prices have more than doubled over less than half a decade. Incomes in those regions have most certainly not. 

Ontario Real Estate Price 5-Year Growth

The 5-year percent growth in the benchmark price for major real estate markets across Ontario.

Source: CREA; Better Dwelling.

Toronto home prices are rising very fast, developing a global reputation, after all. The growth just looks pale in comparison to the gains seen in the rest of the province. BMO warned earlier this year that if small city prices get too close to Toronto too soon, they might stagnate. As the discount for living further away from the big city drops off, so does the incentive to relocate.