Cheap Condos for Sale Toronto: Top 5 Most Affordable Neighbourhoods
As a first-time homebuyer, if you’re looking for the cheapest neighbourhoods in Toronto to buy a condo, Zoocasa has got you covered. They recently compared average condo apartment lease rates with sold prices for condos in 35 neighbourhoods across the city and found that there are still some areas where one can realistically save up for a down payment on a condo in less than a year.
Of course, finding a way to stop the Bank of Canada from continually raising interest rates and making it even harder for first-time homebuyers to qualify for a mortgage is a totally different matter. But if you’re fortunate enough to get pre-approved for a mortgage, at least you have some options to find a cheap condo for sale in Toronto.
Many people are tired of paying exorbitant rental prices in Toronto, which seem to climb higher and higher every year. Rental rates for a small one bedroom condo anywhere in the downtown Toronto core have pushed toward $3,000 per month. So many of those same people are ready to forgo the expense of renting and instead are focused on finding and investing in their very own condo.
With rent prices on the rise and the average selling price for homes in Toronto pushing over $1 million in some areas, many residents are considering buying a condo as an affordable solution. According to Zoocasa, condo sales in the Greater Toronto Area are up 34% with selling prices steadily increasing through 2023.
Where Are The Most Affordable Neighbourhoods?
So once you’ve decided to give up renting and focus on buying a condo, the next thing to tackle is location and price. While real estate in Toronto is consistently expensive everywhere, there are options to find “cheaper” condos. So it should come as no surprise that the most affordable neighbourhoods are primarily located on the edges of the city.
This includes key areas in places like Scarborough Village, Yorkdale-Glen Park Weston, West Hill, Rouge, Thorncliffe Park, and Black Creek.
While it would take as much as 7.5 years of withholding rent payments to secure a condo down payment in Toronto’s most expensive neighbourhoods, 12 of the 35 neighbourhoods studied had prices that could be matched within a single year if you’re looking for cheap condos for sale Toronto.
Those areas are at least more attainable and realistic for many first-time homebuyers who are trying to get their first place and a foothold in home ownership.
So here are the top five cheap condos for sale Toronto. These are the neighbourhoods with the shortest down payment savings timeline as of early 2023 so they represent the fastest and best way to get into the Toronto real estate market as a new homeowner:
- West Hill, Centennial Scarborough
- Rexdale-Kipling, West Humber Clairville
- Black Creek, York University Heights
- Scarborough Village, Guildwood
Of course, saving up for a down payment on a condo can still be a challenge. Rising inflation seems to inflate faster than average salaries and the minimum wage. In the City of Toronto, an average renter would need to save the equivalent of 16.5 months of rent to come up with the minimum $46,052 down payment necessary to purchase the average Toronto condo apartment unit. That’s a huge amount of money for many people who are just trying to find affordable housing and cheap condos for sale Toronto.
However, Zoocasa’s report provides hope for those looking to get into the Toronto housing market without breaking the bank. Some added spending restraint and solid savings can help you reach that goal.
Cheap Condos For Sale Toronto: Final Thoughts
Buying a home in Toronto can seem very daunting. Cheap condos for sale Toronto can be elusive and very hard to find with increased competition and limited inventory. That said, Toronto condos remain an especially attractive option for first-time homebuyers and newcomers to Canada. By doing some research and exploring the more affordable neighbourhoods with an expert Toronto realtor, you may be able to save up for a down payment on a condo in just one year.