Is Toronto Real Estate Really That Bad? Let’s Compare It to the World’s Most Expensive Cities
You’ve heard the story: Toronto real estate is a runaway train. A bubble. An overpriced disaster just waiting to pop. But what if we zoomed out for a minute? What if we compared our city to the Londons, Parises, and Hong Kongs of the world?
Because here’s the thing: Toronto isn’t just a Canadian city anymore. It’s a world-class city. And with that title comes world-class prices. But does that mean we’re in a class of unaffordability all our own? Or are we just catching up?
To answer that, we’re diving deep into real estate stats, income data, GDP, and the one stat no one talks about: the age of the city. Because a city like Paris has had over 2,000 years to mature its economy and infrastructure — Toronto hasn’t even hit 250.
We’ve compared Toronto to nine other global cities — ones that frequently top international “most expensive” lists — to find out: is our housing market out of control, or simply reflecting our rapid rise on the global stage?
If you’re searching for answers, or just wondering whether $1.7M for a detached house is normal, this one’s for you.
TL;DR: Toronto vs. The World — A Quick Glance
Before we dive into the stories behind each city’s market, let’s zoom out and look at the raw numbers. This table breaks down some of the most critical real estate metrics across ten world-class cities — from average condo prices per square foot to detached home values, incomes, and even how old each city is. The goal? To give you a clearer, more grounded perspective on where Toronto really stands on the global stage. Spoiler: we’re not as outrageous as people love to claim — but we’re definitely not cheap either.
🧠 If Toronto is in a bubble, we’re not alone. Cities like Hong Kong, Singapore, and especially Lisbon rank near the top of global affordability heatmaps — and yet, headlines about “imminent crashes” almost always follow Toronto’s name. That’s because our surge is recent, making globalization feel sudden. In contrast, cities like London and Tokyo have long-established real estate markets — their prices feel “normal” because they’ve been high for decades.
What we’re seeing, really, is Toronto catching up — not spiraling out of control.
Behind the Numbers — Real Estate in Context
Stats are one thing. But every city on this list has its own story — shaped by history, population growth, economic power, and how global capital flows through its streets. In the following sections, we break down what’s really driving real estate prices in each city, how incomes and GDP stack up, and what that all means when compared to Toronto. Whether you’re a data nerd, a buyer, or just trying to make sense of it all, this is where the numbers come to life.
Toronto, Canada 🇨🇦
Founded: 1793 – 232 years old
City Population: ~2.8 million
Metro GDP: ~$470 billion CAD
GDP per capita: ~$68,000 CAD
Average household income: ~$105,000 CAD
Average condo price: ~$725,000 CAD
Average price per square foot (city-wide): ~$900 CAD
Downtown average: ~$1,120 CAD/sq ft
Average detached home price: ~$1.7 million CAD
Toronto is often labeled as unaffordable, and honestly? Fair. But our skyline is still under construction—literally and figuratively. We’re one of the youngest cities on this list, and that matters. Our GDP is still building. Our housing stock is still limited. And our global demand is only rising.
Toronto’s price-to-income ratio for detached homes sits around 16x, which is steep, but still within range compared to other major cities. Our condo market, at roughly 9x income, is on par with global norms. When people say we’re in a bubble, they’re often comparing Toronto to what it was—not to where it's headed.
London, UK 🇬🇧
Founded: 47 AD – 1,977 years old
City Population: ~9.84 million
Metro GDP: ~$1.12 trillion CAD
GDP per capita: ~$118,000 CAD
Average household income: ~$102,000 CAD
Average condo price: ~$2,050 CAD/sq ft
Average detached home price: ~$1.96 million CAD
London has long been a playground for global capital — and its real estate reflects that. Prices remain sky-high, even amid market cooling. What’s wild is that detached homes cost nearly $2 million, yet incomes remain almost identical to Toronto’s.
Compared to Toronto? London’s price-to-income ratio is higher, especially when you consider that many first-time buyers are locked out completely. Detached homes cost ~15% more than in Toronto, but incomes are on par. And while GDP per capita is higher, so are daily costs. Affordability in the UK capital is relative — and not in a good way.
Paris, France 🇫🇷
Founded: 52 BC – 2,275 years old
City Population: ~2.05 million
Metro GDP: ~$1.03 trillion CAD
GDP per capita: ~$93,000 CAD
Average household income: ~$65,000 CAD
Average condo price: ~$1,310 CAD/sq ft
Average detached home price: ~$1.8 million CAD
The romance of Paris ends where the housing hunt begins. The central city is dense, vertical, and ultra-competitive. Detached homes are rare, and condos rule. Combine that with income levels lower than Toronto’s, and the picture becomes clear.
Compared to Toronto? Parisians earn ~40% less than Torontonians, yet real estate costs are comparable. The price-to-income ratio is among the worst on this list. Despite a well-developed economy, buyers in Paris face affordability challenges that make Toronto’s market feel almost chill by comparison.
Lisbon, Portugal 🇵🇹
Founded: ~1200 BC – 3,200 years old
City Population: ~545,000
Metro GDP: ~$145 billion CAD
GDP per capita: ~$34,000 CAD
Average household income: ~$33,000 CAD
Average condo price: ~$590 CAD/sq ft
Average detached home price: ~$1.05 million CAD
Lisbon has become a hotspot for international buyers, especially digital nomads and expats. But while the architecture and lifestyle are charming, the local economy hasn’t caught up to the soaring prices. Wages remain low, and housing affordability is a major crisis for locals.
Compared to Toronto? At ~$590 CAD/sq ft, Lisbon looks like a bargain—until you factor in the average household income of ~$32,000 CAD. That makes Lisbon’s price-to-income ratio worse than Toronto’s, despite lower sticker prices. In Toronto, a dual-income household earning $210K could feasibly buy an entry-level home. In Lisbon, many locals are priced out of the very neighbourhoods they grew up in. Toronto may be expensive, but at least the incomes come closer to keeping up.
New York City, USA 🇺🇸
Founded: 1624 – 401 years old
City Population: ~8.3 million
Metro GDP: ~$3.5 trillion CAD
GDP per capita: ~$132,000 CAD
Average household income: ~$115,000 CAD
Average condo price: ~$2,225 CAD/sq ft
Average detached home price: ~$1.75 million CAD
New York isn’t just a city — it’s a global brand. Its real estate market reflects that. In Manhattan, $1M CAD gets you a studio, maybe. In the boroughs, detached homes start around $1.75M and climb quickly. Despite having higher incomes than Toronto, NYC residents deal with significantly higher property taxes, intense bidding wars, and a chronic shortage of space.
Compared to Toronto? Downtown condos in Toronto average around $812 CAD/sq ft, making them nearly three times cheaper than Manhattan’s. Even with NYC’s higher average income ($115K vs. Toronto’s $105K), the price-per-square-foot difference is massive. And while detached prices in both cities are similar, Toronto often offers larger lots, newer builds, and lower carrying costs — giving it a surprisingly strong edge.
San Francisco, USA 🇺🇸
Founded: 1776 – 249 years old
City Population: ~808,000
Metro GDP: ~$1.4 trillion CAD
GDP per capita: ~$180,000 CAD
Average household income: ~$160,000 CAD
Average condo price: $1,250 USD/sq ft ($1,685 CAD/sq ft)
Average detached house price: $1.9 million USD ($2.55 million CAD)
Prime areas: Pacific Heights, Nob Hill, and Sea Cliff often exceed ~$3,000 CAD/sq ft
San Francisco is the original tech boom town — and its real estate reflects it. Limited buildable land, restrictive zoning laws, and decades of tech-fuelled wealth have pushed prices into the stratosphere. Detached homes routinely sell for over $2.5 million CAD, even in neighbourhoods far from downtown. And condos? They average ~$1,685/sq ft, which is more than double Toronto’s average of $812.
Compared to Toronto? Incomes in SF are significantly higher ($160K vs. $105K), but so are the costs — especially when it comes to entry-level ownership. A detached home in San Francisco is about $850K more than Toronto’s average, and even a modest condo comes with a serious premium. Both cities share a similar price-to-income ratio (16x for detached), but the sheer upfront cost in San Francisco makes Toronto look relatively accessible, especially for first-time buyers or those chasing appreciation over prestige.
Singapore 🇸🇬
Founded: 1819 – 206 years old
City Population: ~5.9 million
Metro GDP: ~$670 billion CAD
GDP per capita: ~$113,000 CAD
Average household income: ~$125,000 CAD
Average condo price: ~$1,800 CAD/sq ft
Average detached home price (Landed Property): ~$4.5 million CAD
Prime areas: Orchard, Sentosa, and Holland Village range between $2,500–$3,500 CAD/sq ft
Singapore has one of the world’s most tightly managed real estate markets. Foreign buyers pay hefty stamp duties, and most residents purchase government-subsidized HDB flats rather than private properties. But if you’re buying private sector housing? It’s elite-tier expensive.
Compared to Toronto? Singapore’s condo prices are 60% higher, and detached homes are nearly triple Toronto’s average price. Even with higher household incomes ($125K vs. $105K), the affordability gap is stark. Plus, with limited land and high density, homes in Singapore are often smaller than Toronto’s despite their premium price tags.
Hong Kong 🇭🇰
Founded: 1841 – 184 years old
City Population: ~7.3 million
Metro GDP: ~$545 billion CAD
GDP per capita: ~$75,000 CAD
Average household income: ~$88,000 CAD
Average condo price: ~$2,100 CAD/sq ft
Average detached home price: ~$5.3 million CAD
Prime areas (The Peak, Mid-Levels): $4,000–$6,000 CAD/sq ft
Hong Kong is the poster child for extreme real estate pricing. With severely limited land, sky-high population density, and heavy investment from mainland China and international buyers, demand is relentless. The result? Skyward development is the only way forward — and even a shoebox studio can command luxury-level pricing. Detached homes are practically mythological, reserved for billionaires and oligarchs.
Compared to Toronto? Condos in Hong Kong cost more than 2.5x Toronto’s average of $812/sq ft. Detached homes? Over $3.5 million more expensive on average. Yet household income is ~$17,000 lower than Toronto’s. That disparity gives Hong Kong the world’s highest price-to-income ratio (60x for detached). Toronto might make headlines, but next to Hong Kong, we look like a discount bin.
Tokyo, Japan 🇯🇵
Founded: 1457 – 568 years old
City Population: ~9.7 million
Metro GDP: ~$2.1 trillion CAD
GDP per capita: ~$85,000 CAD
Average household income: ~$72,000 CAD
Average condo price: ~$1,020 CAD/sq ft (central wards)
Average detached home price: ~$950,000 CAD
Prime areas (Minato, Shibuya): $1,500–$2,000 CAD/sq ft
Tokyo is the world’s largest city and a rare example of what happens when a megacity commits to abundant housing. The government has long encouraged residential construction—even in prime urban zones—keeping home prices relatively stable despite massive population density.
Compared to Toronto? Toronto’s condos are ~10% more expensive, and detached homes cost ~79% more. Incomes are similar, but Tokyo’s housing policy has kept affordability far more balanced. While Toronto is praised for being a desirable destination, Tokyo is proof that affordability can coexist with scale—if cities build enough to meet demand.
Sydney, Australia 🇦🇺
Founded: 1788 – ~237 years old
Metro Population: ~5.3 million
Metro GDP: ~$560 billion CAD
GDP per capita: ~$106,000 CAD
Average household income: ~$110,000 CAD
Average condo price: ~$1,400 CAD/sq ft
Average detached home price: ~$1.8 million CAD
Prime areas (Paddington, Mosman, Bondi): $2,000–$3,000 CAD/sq ft
Sydney is often mentioned in the same breath as Vancouver and Hong Kong when it comes to housing unaffordability. With stunning coastal views, a strong economy, and immigration-driven growth, the city’s real estate market continues to stretch buyers to their financial limits.
Compared to Toronto? Condo prices in Sydney are 25% higher than Toronto’s downtown average, while detached home prices are nearly identical. But with a slightly higher income ($110K vs. $105K), Sydney’s affordability remains just as tight. Like Toronto, the city's constrained geography and strong demand have created a market where even solid incomes don’t guarantee housing security.
🫧 Are We in a Real Estate Bubble?
The word “bubble” gets thrown around a lot — especially in Toronto. But what does that actually mean?
A real estate bubble typically refers to housing prices that are significantly higher than what economic fundamentals (like income, GDP, and local demand) would justify — often driven by speculation, investor frenzy, or low interest rates.
Toronto has often appeared on international bubble watchlists, such as the UBS Global Real Estate Bubble Index. But here’s what those reports often miss:
Immigration & population growth: Toronto’s population continues to grow rapidly, adding pressure to an already supply-constrained market.
Supply shortages: With strict zoning, long approval timelines, and construction bottlenecks, the new housing pipeline can’t keep up.
Favourable tax structure: No capital gains tax on your primary residence. No annual wealth tax. Lower property taxes than many global peers.
Cities like Hong Kong, Singapore, and London have had “bubble” levels of pricing for decades — yet their housing markets haven’t popped. Why? Because in global cities, high prices are more about structural demand and limited land than about speculative mania.
TL;DR: If Toronto is in a bubble, we’re not alone — and we might not burst the way people expect. In fact, we might just be entering our global-city era.
So... Is Toronto Really That Expensive?
Short answer: Yes — but not uniquely so.
In fact, compared to its global peers, Toronto offers more square footage, better price-to-income ratios than many cities, and relatively more attainable detached home options. We’re not “cheap,” but neither are we the unaffordability outlier that headlines make us out to be.
What’s important to understand is perspective. Cities like London, New York, and Paris have had centuries or even millennia to become global destinations. Toronto is barely a teenager by comparison — yet we’re already competing at their level.
That means Toronto’s real estate pricing isn’t a warning sign. It’s a signal that we’ve joined the global stage — and we need to act like it. We need more housing, smarter policy, and clearer communication with buyers and sellers.
One last thing worth noting? Toronto’s real estate taxes are low by global standards. There’s no annual wealth tax like in parts of Europe, and capital gains exemptions on primary residences still exist. These seemingly small differences can make a big impact on long-term affordability and investment performance.
Looking to Navigate Toronto’s Real Estate Market With Clarity?
If you’re feeling overwhelmed, you’re not alone — but you’re also not stuck. Whether you're buying your first condo, upgrading to a detached, or exploring investment properties, understanding the real context of this market makes all the difference.
I'm Vanessa Copeland — a Toronto real estate agent who believes knowledge is power (and fun facts are underrated). I help buyers and sellers make smart, informed moves in a market that’s always evolving.
👉 Let’s talk real estate. Contact me here or, explore my latest Toronto real estate listings, or text me directly to chat strategy.
