A new report makes it clear that it is more expensive to own or rent a home in Mississauga as opposed to Brampton, but not by much.
The Toronto Real Estate Board’s (TREB) latest monthly market tracking data for October showed the average sale price for all types of dwellings in both markets is either breaking or approaching record highs, with Mississauga far outpacing its northern neighbour in Peel Region.
Mississauga shattered the previous market record last month with an average price of $816,383 across 833 sales.
In Brampton, TREB reported an average October sale price for all types of dwellings of $739,889 — only $25,267 shy of the March 2017 record of $765,156 in that market.
A recent report from online real estate portal Zoocasa.com titled: “What You’d Need to Save to Buy a Home in Mississauga and Brampton on a Median Income” released on Oct. 31, concluded Mississauga real estate was “well out of reach” for median-income households.
“Even median prices for condos for sale in Mississauga well outpace earnings and affordability at $470,000. Such a homebuyer would qualify for a maximum mortgage amount of $372,409 meaning they’d need to come up with the remaining $97,591 — an amount that would take them 5.9 years to save up,” read the report analysis.
“The affordability gap only widens per home type; homebuyers would also be $256,133 short on a townhouse, requiring a savings timeline of 15.4 years. As well, they’d be saving for multiple decades to afford single-family Mississauga houses, at 24.4 years for a semi-detached house, and 42.2 years for a detached house, respectively,” it added.
The study found that while affordability was slightly better in Brampton, the cost of ownership was still beyond the reach of most families and individuals.
“A slightly higher median household income of $87,290, combined with lower overall housing prices makes Brampton more accessible for aspiring homebuyers, though largely still out of reach for median-income earners,” said Zoocasa.
Renting as opposed to buying really doesn’t make sense as the median monthly rent for all property types in Mississauga was $2,336 in the third-quarter of 2019. That represented an increase of 7.5 per cent in just a year compared to $2,173 in the fourth-quarter of 2018.
The median rent in Brampton came in at $2,250 in the third-quarter of 2019, increasing 15.8 per cent over the past year. While registering a higher percentage increase, the median rent in Brampton remained slightly cheaper by $86 per month than in Mississauga.
Both Brampton and Mississauga outpaced Vancouver’s median rental rate of $2,048 for all types of rentals in the third-quarter of 2019.
These high costs of real estate in Mississauga and Brampton doesn’t bode well for the future. Young people who have been born and raised in these cities will increasingly be forced to look in other cities and far-flung towns to buy more affordable and bigger homes. It means possible school closures as there will be fewer young families making these cities their homes. With more condos, there will be an influx of young single residents who share the rent as opposed to stable families. There will be more seniors and consequently more pressure on hospitals.
In time, businesses could also end up moving away as it could be harder to attract workers due to the high cost of rents. -CINEWS