Buying a house is one of the biggest investments you’ll make in your lifetime. So far in 2024, the average price of a single detached home in Toronto is $1,300,000. That’s not exactly affordable for those making the average annual salary of $57,549 in The Six.
So is it any wonder there’s a waiting list for some of the most affordable homes in the city? Of course, the most affordable houses in TO aren’t necessarily what you think. If you haven’t heard of the Toronto Islands Homes and their incredibly low price tags, here’s everything you need to know — including how to snag one.
What Are the Toronto Islands Homes?
The Toronto Islands are 15 small, interconnected islands in Lake Ontario that you can access by ferry from downtown Toronto. Many Torontonians are familiar with the Islands because they’re a popular tourist spot, with attractions like Centreville Amusement Park, beaches, splash pads, and trails coming alive each summer.
But did you know nearly 700 people live on the Islands year-round? There are 262 houses on Ward’s Island and Algonquin Island, and they’re some of the most affordable homes in the country.
Related: What $2,500 in Rent Will Get You in Toronto Right Now
How Much Is a Home on Toronto Islands?
Each home on the Toronto Islands sits on public land that the province of Ontario has leased until December 2092. Because of that, the value of the land is set by legislation and currently sits at $60,000 on Ward’s Island and $78,000 on Algonquin Island. Owners need to pay a one-time fee to lease the land in addition to what it costs to purchase the actual home.
Regular real estate metrics like location or lot size don’t determine the prices of the homes on the Toronto Islands, either. Instead, a regulated appraisal and inspection determine how much it cost to build the home, and the price reflects that estimate. As a result, homes on the Islands range from $50,000 to $700,000, and the average home price is anywhere from $150,000 to $400,000.
Related: It’s Official: Toronto is Now Less Affordable Than New York and Miami
How Can You Purchase a Home on the Toronto Islands?
Given the low cost and idyllic style of living, the Islands’ homes are in high demand. Since the early 1990s, the only way to join the coveted Islands homes club is to put your name on the official Purchasers’ List, which maxes out at 500 names.
Beginning in October 2024, those who want to add their names can enter the lottery to do so every two years. The Toronto Islands Residential Community Trust Corporation adds names to the end of the list by drawing entrants until it once again has a list of 500 names. Since the list’s establishment in 1994, 70 homes and leases have been sold.
When a home becomes available for sale, the Trust sends offers to the top 150 to 250 people on the list. Buyers typically come up within the first 100 names, with an average of one to two houses coming up each year.
To stay on the list, home hopefuls must pay an annual renewal fee of $50. Those who snag a home must use it as their principal residence year-round; they cannot simply use it as their summer home or lease it out.
Related: The Most Extravagant and Coolest Homes on Luxe Listings Toronto
What Are the Cons of Living on the Toronto Islands?
While the benefits of living on the Toronto Islands are obvious (beautiful scenery, low home prices, a tight-knit community), there are some downfalls. For example, sometimes, the politics of living in a small community can get ugly.
An even bigger issue for some is that there are no convenience stores, fast food delivery places, or general services on the island. Residents must take the ferry to the city to go grocery shopping or pick up household staples. When they return, they must also lug their purchases home on foot or by bike since cars are prohibited on the Islands. Getting service people in can also be a chore, and residents will often wait until a few of them need the same service to call a professional in.
For some, it’s a small price to pay for small-town living in the big city. If, of course, they’re lucky enough to get the chance to live there.
