House Hunting? Run the Numbers Before Running to the ‘Burbs
“There’s no refuge in the suburbs from Canada’s housing affordability problem,” writes Rob Carrick.
“You can buy a house for less money in the suburbs than you can in a big city,” he continues, “but the cost of commuting may kill almost all your savings."
"No question, you’ll find house prices are cheaper outside big cities. Toronto Real Estate Board numbers suggest a spread of almost $250,000 between city homes and those in the neighbouring suburbs. But as shown in a spreadsheet created by [David Hughes with the Mortgage Group Ontario Inc.], suburban living loses its cost advantage if you have two adults commuting by car each day. Add the effect of stress and time spent in gridlock, and suburbia looks even more costly."