A recent report by Prudential Douglas Elliman looked at Manhattan studio (bachelor) prices from 2002-2011. It found that in the Upper East Side, the average size was 478 square feet and the average price was $739 per square foot. The average price works out to be $353,000.
Now compare that to our downtown Toronto condo market. The average studio here is 400 -500 sf. ( A note of caution, lenders hate to finance anything less than 400 square feet, so stay away from these units). In the resale market the price is about $600 per square foot. In the new pre-construction market, you can expect to pay $700-800.
Now I am not against having Toronto prices at or higher than New York’s. But just think for a minute, salaries in New York are considerably higher than in Toronto. As for rents, studios here are moving up to $1400 per month (they used to be $1200) whereas in New York it is $1700-$2000. Do the math! Our prices cannot go any higher unless rents move up and that means salaries must be higher too. When will that happen? As a potential property owner, do you want to bet on that?