The real estate scene in Mississauga is…interesting. Like anything, there are pluses and minuses to it, with it booming the economy, but also making it really hard for anyone to buy homes. Well the forecast for the 2020 real estate scene in Mississauga sees houses prices soaring ever higher.
Many see this as a really good thing – those who have investments they’re excited to cash-in on – but the increasing house prices are rapidly outpacing personal income growth, according to the latest blog post from real estate broker, Zoocasa. The company “compiled 2019 median home prices and gains within municipalities in seven GTA regions and compared them to the after-tax incomes earned in each to see how home values have increased relative to local household earnings.”
Zoocasa’s findings showed that the average household income in the Peel Region was not growing anywhere near as fast as the housing market was growing. In fact, the average increase in house prices is more than many people’s annual salary.
“Peel Region overall experienced the second-highest year-over-year median price increase, up 6% to $700,000 – a difference of $40,000, accounting for 53% of local incomes. Individual municipalities saw price growth between 4 – 7%, accounting for 31 – 64% of incomes.”
While the finding states that the Peel Region’s average growth was $40,000, that’s actually skewed by Brampton and Caledon, as you can see in the image above. The growth in Mississauga was actually $46,750, which means it is 64% of a household’s average income. And, when talking about household income, it’s always important to bear in mind that that too is often skewed by those earning massive amounts.
The Toronto area saw the highest growth, as expected, with the central part of the city growing by 96%! While Mississauga’s change was nowhere near that bad, it’s still incredibly unrealistic to expect people who earn $72,657 and less to be able to afford a home when the prices are rising this fast.
By the end of this new decade, will Mississauga be on par with Toronto? It’s a scary prospect that lends further credence to the idea that young people will have to leave Mississauga to every own a home, unless they have family money. That or many, many years or living on pennies to try and save for a down payment. Hopefully something changes before our city loses its identity.