A new report from Zoocasa predicts that the average selling price of homes in Toronto will increase by 5.6 percent to 2 million dollars by 2034.

According to the Toronto Regional Real Estate Board's report for March 2024, the average selling price of homes increased by 1.3 percent to $1,121,615.

Since 2020, the average price of a home in Toronto has exceeded one million dollars, and in the past two years, the average home prices in 43 percent of Toronto's neighborhoods have surpassed 2 million dollars.

Even some of the more affordable neighborhoods in the city, including Smythes Rockcliffe and Eglinton West Keelesdale, have seen an increase in the average price of detached homes, reaching 1.6 million dollars in February 2023.

The average home prices in the High Parkdale Roncesvalles and Park-Swansea neighborhoods in Toronto also surpassed 2 million dollars by 2022, which are also classified as some of the more affordable areas in the list of the city's most expensive neighborhoods.

Some of Toronto's most expensive neighborhoods, such as York, Hoggs Hollow, and Bridle Path Mills, have seen significant price increases exceeding 3.6 million dollars.

With the average cost of a home in Toronto expected to reach 2 million dollars in the next 10 years, Zoocasa indicates that interest rates will play an important role in how prices are set.

The report stated: "As interest rates decline, housing prices rise."