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The soaring cost of homes in Toronto has become a defining feature of the city's real estate landscape over the past decade. For both current homeowners witnessing unprecedented increases in property values and hopeful buyers priced out of the market, the reality is stark. Data from the Toronto Regional Real Estate Board (TRREB) reveals staggering price jumps, with detached home prices nearly doubling from $898,332 in March 2014 to $1,708,437 in March 2024. This meteoric rise reflects a trend fueled by factors like robust sales and low borrowing costs, particularly notable during the pre-pandemic years when affordability and favorable market conditions contributed to significant growth.

The COVID-19 pandemic accentuated the already red-hot real estate market, propelling Toronto home prices into the million-dollar average territory by 2021. Despite occasional dips, such as in 2018 and 2023, prices have generally trended upwards, though recent data indicates a slowdown in the rate of increase. However, this modest reprieve does little to alleviate the affordability crisis. RBC economist Robert Hogue emphasizes the financial strain faced by prospective buyers, especially in Toronto, where a staggering 84.8% of median household income is required to cover homeownership costs. The confluence of sky-high interest rates, stringent mortgage stress tests, inflation, and escalating home prices has made purchasing a property in Toronto an increasingly daunting prospect for many, particularly young professionals struggling to afford even modest condos, let alone detached houses.

Looking ahead, forecasts paint a challenging picture for Toronto's housing market. Reports suggest that by 2034, the average selling price of a Toronto home could reach a staggering $2 million. Even now, affordability concerns persist, with neighborhoods once considered more accessible now nearing the city's average home price. As interest rates potentially soften in the coming years, competition is expected to intensify, exacerbating the struggle for prospective buyers. In the face of these daunting realities, the dream of homeownership in Toronto appears increasingly out of reach for many.

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