Almost all say Toronto homes unaffordable
One third of homeowners use them as retirement savings
TORONTO April
13th, 2016 - In a random sampling of public
opinion taken by the Forum Poll™ among 858 Toronto voters, almost all characterize
Toronto’s homes as unaffordable (89%), and 4-in-10 describe them as “not at all
affordable” (41%). Those most likely to say Toronto homes are not at all affordable
are the youngest (56%), those in mid income groups ($40K to $60K - 44%), in the
downtown (45%) and among Olivia Chow voters from the last election (51%).
6-in-10 own, of these, two thirds have mortgages
Close to 6-in-10 Toronto
voters own their homes (58%), and this is especially common among the oldest
(75%), the wealthiest ($100K to $250K - 81%), in the old Borough of York
(caution, small base - 72%) and among the best educated (post grad - 65%).
Among homeowners, two thirds still have a mortgage (64%), and this is most
common to the youngest (81%), the wealthiest ($100K to $250K - 74%), in York
(caution: small base - 76%) and the best educated (university graduate or more
- 68%).
One third use home as RRSP
One third of Toronto
homeowners say they use their homes as their retirement savings (34%), and this
behaviour is common to the boomers (55 to 64 - 41%), low to mid income groups
($40K to $60K - 49%), in North York (39%), among Doug Ford voters and among the
least educated (43%).
Homeowners estimate average value of Toronto home at over $800K
When asked to estimate the
current value of their homes, homeowners are most likely to say $500K to $1
million (52%), followed by less than $500K (28%). On average, claimed value of
Toronto homes in total is about $830K, and is highest among boomers ($960K),
the wealthiest ($900K) and in the downtown ($990K). The highest proportion of
homes under $500K is in Etobicoke (35%).
Very few homeowners plan to sell soon
Fewer than one tenth of
homeowners plan to sell their homes within the year (7%), and
it is more common among the youngest (9%), mid income groups ($60K to $80K -
17%), in Scarborough (9%), among Chow voters (11%), those with children (9%)
and the best educated (post grad - 11%).
One fifth of renters plan to buy
One fifth of those who
don’t own homes plan to buy one in the next year (20%), which, coupled with the
fact that just half this percentage of homeowners plan to sell (7%),
illustrates the Toronto market shortage. Those who plan to buy are younger (35
to 44 - 29%), wealthier ($80K to $100K - 41%), in North York (24%), among Doug
Ford voters (30%) and among those with children (33%).
“Hope springs eternal,
and one fifth of the renters in Toronto plan to buy a home in the next year.
The conundrum is, of course, a fifth of owners aren’t selling, more like half
that proportion, so there is a market gap. And not only a gap between supply
and demand, but a significant affordability gap as well, in that almost no one
sees the Toronto home as affordable," said Forum Research President, Dr. Lorne
Bozinoff.
Lorne Bozinoff, Ph.D. is the president and
founder of Forum Research. He can be reached at lbozinoff@forumresearch.com or at (416)
960-9603.
