55% of Toronto Downtown Households Don’t Have a Car, Yonge and Eglinton Will See a Gateway Transportation EffectBy CondoWong Tuesday Jaunary 15, 2019
Public Transit on the Rise
In downtown Toronto, we have to deal with hard-to-find parking spots, steep rates for parking lots, and headache-inducing traffic jams every single day, you would start to wonder whether it’s worthwhile to own a car. According to the Transportation Tomorrow Survey, released last year based on 2016 data, 55% of households in downtown Toronto do not own a car. The percentage is probably even higher today. This shows that even without major new transit infrastructure during the past 10 years in Toronto, the city is moving in the direction of decreasing reliance on the car.
Time is Money
According to a new study from the Canada Mortgage and Housing Corporation, in the Greater Toronto Area, the added cost (time and money) of a long commute often outweighs the savings from cheaper housing in the suburbs surrounding in the city. More and more people are willing to spend extra money to live near rapid public transit. “The number one thing people will pay for is walkability to a subway station,” says John S. Andrew, Director of Queen’s University’s Executive Seminars on Corporate and Investment Real Estate. “In Toronto you can draw concentric circles around subway stations and you can see the further you move, the lower the property values are. It’s not nearly as true with streetcar lines or bus lines, because they’re slow.”
“Quality of life comes without spending two hours on the 401,” he adds.
The Gateway Transportation Effect – Yonge and Eglinton
It is generally true that homes within a kilometer (around 12-minute walk) of rapid public transit will value 10 to 15 percent more than those further away in the same area. If an area has a major transit improvement, which facilitates rapid access to the downtown CBD (Central Business District), the value of real estate in the area would also increase. This is called the Gateway Transportation Effect.
The Gateway Transportation Effect is building up in the Yonge and Eglinton area now with the construction of the Line 5 Eglinton LRT, which is the orange line in the diagram below. The Line 5 Eglinton is a light rail transit line that will run along Eglinton Avenue between Mount Dennis and Kennedy Station. The 19-kilometer corridor will include a 10-kilometer underground portion, between Keele Station and Laird Drive. Track for the $5.3 billion-dollar project was first laid in August 2017, and it is set to open to the public in 2021.
As of today, with the subway connecting to downtown, the Yonge and Eglinton intersection is already quite an established neighbourhood with numerous condos, offices, shops and restaurants. The addition of the Line 5 Eglinton LRT, connecting the east and the west, is going to bring in new employment, retail and real estate opportunities and transform the neighbourhood to a whole new level.
The Line 5 Investment
If you also see the potentials of the Gateway Transportation Effect that the Line 5 Eglinton is creating, then you may want to seize the opportunity to invest in the Line 5 Condos.
The income statement of an example 1-bedroom unit at the Line 5 Condos is available here.