Single family homes are a treasured and coveted staple in Toronto’s real estate market. Not only are they a popular abode for families, they are also in massive demand for their investment potential. With high demand, comes high price. Prices for single family homes have continued to skyrocket in Toronto despite the negative aspects that such homes bring. In this article, we’ll go through the rise of the single family home and why, perhaps, it's time for a change.
Toronto is obsessed with single family homes. The construction and subsequent popularity of these abodes began after WWII as North America’s culture shifted during the baby boom. Privacy, space and the ability to build equity were key drivers in this culture shift, coinciding with the rise of the nuclear family. While other nations in Europe pushed for public housing, North America pushed for infrastructure and pulled away from the traditional community housing and living with an extended family in exchange for private lots and seclusion.
Price appreciation of single family homes drove the popularity of the structures even higher. However, the downsides to such an appreciation are often ignored. Increasing social isolation and rampant loneliness have become synonymous with modern day living, exacerbated by the pandemic. Though purchasing a single family home is still a viable way to build equity, such appreciation is often a burden on those without the means or ability to purchase a single family home. Increasing rents not only price many out of the city but also prevent many families and singles from being able to enter the property market. A strong focus on privacy and seclusion has ed to the erosion of traditional communities in many neighborhoods and contributed to a rise in class segregation. With all these negative aspects, how is such a structure still so popular?
New construction of single family homes in Toronto rose dramatically in September. The Building Industry and Land Development Association (BILD) announced that sales of new constructions hit the highest levels for September since 2003 with 2,334 units sold. This is a huge number, up 168 percent from the previous year and 110 percent from the 10-year average. The trend and high demand has led to further increases in the average prices of single family homes even amidst the global pandemic. The average price for single family homes in September was $1,179,249, a 9 percent increase since the previous year. With such surging popularity, prices will continue to rise. Is there any alternative for buyers who want to avoid the negative effects that single family homes can bring?
Co-living is a solution to many of the negative aspects that single family homes can bring. GoCo believes that Toronto and many urban cities around the world need to shift culturally back towards community-based living. Cohousing is gaining popularity across North America with communities being developed across both Canada and the US. Having private bedrooms and spaces while sharing large communal areas for dining and socializing has shown to decrease loneliness, improve happiness and create happy residents. It’s also a great way to lower greenhouse emissions and waste. Zoning laws need to change and there needs to be a push on both a municipal and provincial level to push our communities back into the focus.