Mississauga officially named one of Canada’s least affordable housing markets
Last week, the Toronto Region Real Estate Board (TRREB) released its monthly housing data and revealed that the average house price (all home types combined) in Mississauga hit $782,415 in January 2020.
With housing supply failing to keep pace with demand, real estate experts expect house prices in Mississauga and the GTA to continue to inch upwards—and according to a recent report from real estate brokerage RE/MAX, Mississauga is already one of Canada's least affordable cities.
"Mississauga real estate prices have been on a steady incline in recent years, so it's little surprise that the city's housing market ranked 14 of 16 Canadian cities when it comes to housing affordability," the 2020 RE/MAX Housing Affordability Report reads.
In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada's most populous regions and ranked them on an affordability scale, with number one being the most affordable and number 16 being the least affordable.
The report says that RE/MAX's affordability ranking was determined by assessing the percentage of a buyer's monthly income needed to carry a mortgage—assuming a down payment of 25 per cent—and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.
According to the report, Mississauga’s real estate prices have undergone a seven-per-cent increase from 2018 to 2019, and another five-per-cent increase expected this year.
While Mississauga’s ranking on the list is likely to create anxiety (especially for first-time homebuyers), home hunters on a tighter budget should note that more affordable homes can be found in Malton, the older part of Meadowvale, and Lisgar (which is actually an up and coming hotspot).
Mississauga's three least affordable neighbourhoods are Mineola, Port Credit and Lorne Park.
According to the report, Canada's most affordable city to buy a home is Regina (1) and the least affordable place to buy a home is Vancouver (16).
Interestingly enough, RE/MAX says that Mississauga real estate is currently considered to be undervalued, with an average 2019 sale price of $760,005. The report notes that the city is valuable because it boasts access to various public transit lines, three major highways, and Toronto Pearson Airport.
"These factors typically attract larger corporations and homebuyers follow, as many people generally want to live close to their place of work," the report reads.
As for what homes are more affordable, the report says that first-time homebuyers typically look to condos or townhouses when selecting a starter home.
The report also notes that the lack of affordable housing in Mississauga has led to multiple families living in homes designed for just one family. Some buyers are also renting out rooms or larger portions of their homes to tenants in order to cut down on expenses.
According to recently-released TRREB data, the average price of a detached home reached $1,187,718 in Mississauga in January. Semi-detached homes cost $817,432, townhouses cost $794,859 and condos cost $539,788.
Are you planning on buying a home in Mississauga this year?
Cover photo courtesy of RE/MAX
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