Toronto headlines love to scream that the housing market is “cooling” or “crashing.” But here’s the truth almost nobody wants to say out loud:
👉 Even with recent price declines, Toronto is now more unaffordable than ever.
A new study exposes just how bad things really are — and why families are stuck, renters are squeezed, and homebuilders are pulling back exactly when the city needs more supply.
At Lendworth, we work with homeowners across the GTA every day, and the message is clear:
Equity matters more than ever — because the traditional path to ownership is broken.
Let’s break it down.
💸 Median Families Are Nowhere Near Affording a Home — Even After Price Drops
In 2023 (the most recent full year of data), a typical Toronto family earning the median after-tax income of $60,510 needed:
$216,240 for a 20% down payment
That’s 42.9 months — nearly 4 years — of take-home pay just to get in the door
Monthly mortgage payment on a “typical” home: $5,557
That’s 110.2% of their entire after-tax income
Read that again.
A median family would have to spend more than their entire income on a mortgage.
A decade ago?
The numbers were dramatically different:
20% down payment required 26.4 months of income, not 42.9
Mortgage payments were 56% of median income, not 110%
We haven’t just crossed a line into unaffordability.
We’ve torched the map.
🏚️ Rent Isn’t the “Affordable Option” Either
If you think renting is the escape hatch, think again:
Median rent in 2023: $1,750/month
That’s 34.7% of median after-tax income
Back in 2014?
Only 27.7% of income.
Renters aren’t catching a break — they’re drowning too.
📉 “Prices Are Down!” — Yes, But It Doesn’t Matter
Home prices peaked at $1.27M in early 2022.
By Q2 2025, they fell to $1M.
That’s a big drop… but still:
❌ Way above pre-pandemic levels
❌ Still totally out of reach for typical buyers
❌ Not nearly enough to restore affordability
And here’s the twist:
Lower prices are actually shutting down new homebuilding.
Developers are pulling back because projects no longer pencil out — which pushes supply even lower.
🚧 Why New Homes Aren’t Being Built — Even Though Toronto Desperately Needs Them
Toronto is one of the most difficult cities in Canada to build in.
Here’s what’s slowing everything down:
1️⃣ Approval Times Are Insane
Toronto: 2+ years
Vancouver: 8 months
Edmonton: 3 months
Toronto is 7× slower than Edmonton.
2️⃣ Municipal Fees Are Crushing Projects
Charges per high-rise unit:
Toronto: $134,900
Ottawa: $38,100
Edmonton: $6,900
Toronto’s fees are 20× higher than Edmonton’s.
3️⃣ Provincial Housing Reforms Are Stalling
Ontario walked back key Housing Task Force recommendations, including:
Allowing fourplexes province-wide without special approval
Reducing red tape to speed up density
4️⃣ High Immigration + Limited Supply = Pressure Cooker
Demand keeps rising.
Homes aren’t getting built fast enough.
Prices remain stuck far above what families can afford.
🏘️ The Result? A Never-Ending Affordability Crisis
When governments add:
long delays
sky-high fees
restrictive zoning
inconsistent policy
…projects become financially impossible.
And when projects don’t get built?
📉 Less supply
📈 Higher prices
😣 Fewer options for buyers
🏚️ More pressure on renters
💰 More reliance on home equity for financial flexibility
🔑 What Toronto Actually Needs to Fix Housing
Real affordability will only happen if the city commits to:
✔️ Faster, predictable approval timelines
✔️ Lower municipal fees
✔️ Smarter zoning that allows more homes, not fewer
✔️ Policies that make development financially viable
Until that happens, the traditional path — save, buy, pay off mortgage — is effectively broken for median-income families.
📣 What This Means for Toronto Homeowners (And How Lendworth Helps)
While the affordability crisis hurts buyers and renters…
homeowners still hold the only real leverage in Toronto’s market: equity.
At Lendworth, homeowners are:
✔️ Paying down high-interest debt
✔️ Consolidating loans
✔️ Funding renovations to increase property value
✔️ Helping adult children who can’t afford today’s market
✔️ Using second mortgages or HELOC alternatives to access cash quickly
When the traditional banking system says “no,”
your home equity becomes your most powerful financial tool.
🔥 Final Takeaway
Toronto’s affordability crisis isn’t going away — even with falling prices.
The only path forward is:
More supply
Faster approvals
Lower fees
Smarter zoning
Until then?
Home equity is the safety net keeping Toronto families afloat in a broken system — and Lendworth is here to help you use it wisely.