More than any other consumer segment, residential tenants in Ontario shoulder a remarkably large proportion of property taxes, according to the latest study by the Altus Group.
In its newly released 2018 Canadian Property Tax Rate Benchmark Report, Altus Group found that renters in Toronto and Ottawa are especially burdened. The renter-to-home-owner tax burden ratios in these cities stood at 2.07 and 1.36, respectively, over the last year.
For perspective, the ideal ratio is 1.00, with Quebec City (1.04) and Edmonton (1.11) veering closest.
These findings coincided with a new analysis by real estate information portal Zoocasa, which stated that the average price of condos across the city of Toronto went up by 11% year-over-year last month.
The condo value growth rate outpaced that of low-rises in 23 out of 35 neighborhoods. Indeed, in 18 of the 35 neighborhoods covered by the analysis, condo prices saw greater increases than the city average.
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The Altus Group report cited the provincial government as a major factor in this situation.
“No policy changes were implemented by the Ontario Liberal government to cause a significant reduction in the ratios,” Altus stated.
“With the election of the Ontario PC government in June 2018, it remains to be seen if the new government will act on this issue and implement a significant correction in the multi-residential ratio or choose to continue status quo.”
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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