Just when you thought Toronto real estate couldn’t get more ridiculous, multiple parking spaces have gone on the market in the city recently for more than double what the average Canadian makes in an entire year. How is this possible, you ask? According to Strata agents Gilda Motamed and Francisco Hiebert, it comes down to scarcity, location, and pandemic-fuelled lifestyle changes.
This coveted spot, for example, is located in the underground lot of The Massey Tower, just a short walk from Yonge-Dundas Square. Not only is it $120,000 but the maintenance fees are $211 per month. Many people would need to take out a significant loan just to park their car here. But, that’s pretty much the going rate at this particular building, where available parking spots are few and far between, says Hiebert.
“Parking spots at [The Massey Tower] are hard to come by. Limited spots with high demand will result in higher prices. Out of the 9 listings currently for sale, only 3 come with parking,” Hiebert told Curiocity.
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“The building was built on top of an existing structure, so the developer wasn’t able to dig down the same way you could on an empty lot. This resulted in limited availability of parking spots during pre-construction sales.”
For that reason, though, if you own a condo in the building, it will add value to your unit when you’re ready to sell. In most buildings, parking is valued between $30,000 and $50,000, according to Hiebert.
“By purchasing a spot, your condo will appreciate in value. But keep in mind your maintenance fees will increase as well,” said Motamed. This also means that if you own a condo with a parking spot and choose to sell it, the value of your home could go down.
It’s not just the limited availability that has driven up costs. Shifting priorities amid COVID-19 have “pushed people to purchase cars so they can avoid public transit and have the freedom to drive out of the city,” said Hiebert.
All the more reason to move to one of the affordable cities that still exist in Ontario.