Toronto tops world list in housing prices vs. rental costs

by Ryan Smith23 Nov 2015
Toronto has the highest housing prices in relation to its rental rates in a new list comparing 26 other housing markets across the world, according to survey by the Economist.

Canada joins Britain and Australia on a list of countries with “notably over-valued real estate markets,” according to the survey. Canada’s markets, the survey found, are more than 30% overpriced.

“Renting may provide more short-term value in the Canadian market,” the survey concluded.
The Economist found that Canada topped the charts in comparing countries’ housing prices to their respective rental rates. Countries like Australia, Sweden and Britain were also near the top of that list.

The survey found that property prices were on the rise around the world, rising at a median pace of 4.7% annually.

Of the countries surveyed, only China, Singapore, France, Greece and Italy were seeing a drop in housing prices.


  • by PJ 11/26/2015 12:35:57 PM

    you should post a link to the report unless you already did, which i cannot see.

  • by Matt 11/27/2015 11:13:31 AM

    The problem I have with this is this so called "Canadian market". There is no such thing, and any real estate professional will tell you the same thing. There is a Toronto market, and a Vancouver market. A Hamilton market, a Brantford market, a Fort McMurray market...but no "Canadian market".

    I have no doubt that there are markets, such as Toronto or Vancouver, that are overpriced and will see a correction sometime in the not to far off future. But each region's market is different, and drastically so. Mashing it all together and making sweeping statements like "Canada's housing market is overpriced, and needs to see home prices drop" not only spreads fear and doubt in buyers everywhere, but it's completely false.

    Where I'm from (south of Toronto), it is more affordable to buy a home than to rent one, if you can qualify for the mortgage. Vague articles like this that point to a survey and make broad conclusions from it drive me nuts.

  • by 11/27/2015 6:19:38 PM

    Please define what you mean by "overvalued." If there is a demand then it has to be met. If supply is low then it's natural for the prices to go up. In the central part of Toronto, inventory has been such for many years. With continued immigration, where are people going to live?


Is a Toronto foreign sales tax a good idea?