Mississauga real estate prices have been on a steady incline in recent years, so it’s little surprise that the city’s housing market ranked #14 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. However, cost-conscious home hunters in search of a good deal can still find one in the communities of Malton, the older part of Meadowvale or Lisgar, which have been named the most affordable neighbourhoods to buy a home in Mississauga.
Factors contributing to Mississauga real estate prices
Mississauga real estate prices have been on the rise, experiencing a seven-per-cent increase from 2018 to 2019, and another five-per-cent increase expected in this year (source: 2020 Housing Market Outlook Report). This has been a contributing factor in Mississauga being named one of Canada’s least-affordable housing markets.
In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most-populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Mississauga real estate came in at #14 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home is Vancouver (#16).
RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.
Mississauga real estate is currently considered to be undervalued, with an average 2019 sale price of $760,005, coupled with access to various public transit lines, easy access to three major highways that serve as connection points to other parts of the GTA and beyond, and proximity to the Toronto Pearson Airport. These factors typically attract larger corporations and homebuyers follow, as many people generally want to live close to their place of work.
First-time homebuyers – the buyer segment that is typically most-challenged by housing affordability – commonly seek apartment-style condominiums first, with townhomes being the popular second choice. In an effort to enhance housing affordability, there have been some instances where more than one family lives in a home that was originally designed for a single family. Additionally, buyers will commonly live in a portion of the home and rent out the remainder (such as a basement suite) to help cover the mortgage costs.
At the opposite end of the housing affordability spectrum, Mississauga’s three least affordable neighbourhoods are Mineola, Port Credit and Lorne Park.
Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most-populous cities.
In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around home ownership, barriers to owning a home, financial factors impacting home ownership, and what could potentially improve housing affordability.