A research by the Martin Prosperity Institute at the University of Toronto's Rotman School of Management projected what's next for the city's housing market.
The average home will cost $4.4 million
Oh yea, you read that right. Current average is $622,000. Yes, it sounds crazy. But if we’d told people in 1970 that the average cost of a house in Toronto would grow from $30,000 to $600,000 over 50-odd years, they wouldn’t have believed us either. Over the past few decades, housing costs in Toronto have risen by an average of 3.5 per cent every year. If demand for housing keeps growing—and it will, since the population is expected to double—so will the prices. The upshot? Toronto will become a city of renters, and home ownership a luxury reserved for our plutocratic overlords.
A one-bedroom apartment will rent for $1,600
This number seems well under-estimated. The current average is $1,100, some newer 1 bed room units in downtown core have already been rented over $1,600. When speaking of rental, it depends on many factors, eg. if utilities, parking, or sometimes any furniture are included, and how long the lease term is.
Anyhow, right now 45% of households in Toronto are rentals, and that number is expected to swell as real estate becomes increasingly unaffordable. The market hasn’t kept up with demand: only five per cent of new builds over the past 10 years have been devoted to rentals. That’s starting to change - rental housing in Toronto is projected to grow by 75% in next decade.
We will live in the sky, underground or off the grid
In 50 years, we’ll have to maximize every square foot. Here, three cool homes of the future:
The mile-high skyscraper
Toronto is already building lofty condo towers, but in the future we’ll be creating mixed-use vertical cities that generate their own energy and offer every conceivable amenity.
The iceberg house
Iceberg house is a house with big, hidden basements that may be significantly larger than the house that appears on the surface. These basements can be as many as four stories deep. As real estate prices go up, homeowners will opt to build down instead of upsizing. Iceberg houses are wildly popular in London, where the city has approved hundreds of applications:
The future of sustainable living is the Ecocapsule, an adorable mobile pod. It’s meant for off-grid living—and poses a tempting alternative to cramped condo life in dense urban areas.
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