Should I Invest Outside of the City of Toronto?

Investing outside Toronto may offer lower entry costs, but central Toronto real estate delivers stronger demand, stability, and long-term growth.

Buying in downtown or central Toronto is like owning a blue-chip stock: the upfront cost is higher, but so is the return on investment. With condos averaging around $700,000 and detached homes in the core often exceeding $1.5 million (TRREB, 2025), these assets consistently attract tenants and appreciate steadily over time. High demand in the city centre minimizes vacancy risk and supports predictable rental income, which is why many investors view Toronto properties as reliable, long-term wealth builders.

By contrast, properties outside the GTA are more affordable but come with trade-offs. Lower prices often mean higher risk of market corrections, weaker tenant demand, and less stability in property values. Investors in outlying areas may face longer vacancies and lower rental yields, which can erode returns. While cheaper upfront, these markets don’t always offer the same level of security or appreciation as central Toronto.

At Fox Marin Real Estate Team, we’ve guided clients through over 1,000 successful transactions, helping them evaluate when it makes sense to stretch into Toronto’s core versus considering secondary markets. The difference often comes down to risk tolerance and investment goals. For most long-term investors, central Toronto’s combination of steady demand, strong TRREB-backed appreciation trends, and liquidity makes it a worthwhile investment, despite the premium.

Key takeaway: Toronto’s higher prices reflect its resilience. For stable demand and stronger long-term returns, central Toronto usually outperforms outer markets.

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