The high cost of a parking space

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Condo units with parking can come at a surprisingly significant cost

It wasn’t too long ago that when you bought a condo in Toronto, it came with parking. Now,  parking spots with condos are becoming less common. 

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While purchasing a condo is typically a great way for first-time buyers to break into the real estate market, units with parking can come at a surprisingly significant cost. And, in some cases, it can add more than $100,000 to a condo’s purchase price.

A new report from digital real estate platform Wahi looks at just how much a parking spot can add to the cost of a one-bedroom resale unit in the Greater Toronto Area. Wahi found that across the GTA parking ran as low as $12,500 in York, to as high as $122,000 in East York.

The demand for parking is particularly strong in affluent areas or centrally located neighbourhoods. In these pricier neighbourhoods, units with parking sold for a median price of at least $98,000 more than those without parking.

Deer Park was ranked the most expensive Toronto neighbourhood for parking, where units with parking sold for $187,000 more than similar ones without.

Other Toronto neighbourhoods that ranked in the top five for highest parking costs include Saint James Town ($143,500), Yorkville ($140,444), St. Lawrence ($115,000) and Corktown ($107,500).

A parking spot doesn’t just add to the cost of a condo and hence the resale value — units with parking typically sell faster than those without.

Condos without parking tend to sit on the market anywhere from three days to more than two weeks longer than those with parking.

Compared to other boroughs, Scarborough had the biggest discrepancy in average days on market for condos selling with and without parking. On average, units with parking in this area took 25 days to sell compared to 41 days for those without.

While a parking spot can increase a condo’s value and take less time to sell, first-time buyers on a tight budget may find a unit without parking more affordable. Proximity to public transit can make parking less necessary, especially in urban centres.

Knowing the difference in price between a condo with parking and one without can help buyers better understand pricing dynamics to inform their strategies depending on lifestyle needs and where in the GTA they want to live.

Benjy Katchen is the CEO of Wahi, a digital real estate platform that
provides valuable information for realtors and home buyers. For more
information, visit www.wahi.com.