Commuting Costs Increase in the GTA
In Toronto “driving until you qualify” is the trade-off a number of GTA residents now have to make. Commuting further in exchange for lower housing costs has long been a bargain many families have had to make. But now a new study highlights that people might not be saving money after all.
A study from Canada Mortgage and Housing Corp (CMHC) confirmed what many Torontonians have long suspected- the cost of commuting into Toronto actually eats up the savings homebuyers seeks by moving to the outer suburbs.
The study looked at 2016 census data and median GTA housing costs. Some areas still came out ahead such as Oshawa and Clarington. However, other areas like Richmond Hill reported that the cost of housing was higher than Toronto in addition to commuting costs. The tradeoff with Richmond Hill is that travel times into the city are significantly lower.
Lower housing costs are not the sole reason why people move to the suburbs though. Bigger property sizes, suburban amenities, better schools, closer to family, and the environment are some of the top reasons why people choose to live outside of the city.
Commuting not only eats into savings, but it also takes up valuable time. In 2016 there were 2.6 million commuters in the GTA. Those that travel more than 60 minutes one-way are the fastest growing segment of commuters. For many people, this turns an 8-hour work day into a 10 or 12 one. It leaves them exhausted at the end of the day; unable to enjoy the home they got for a better price.
Still, for many commuters the benefits of living outside of the city win. Large properties, cleaner communities, and a more relaxed vibe are worth the additional time and money spent to travel to work.
If you need help buying or selling your Richmond Hill home, feel free to contact us!