Toronto Car Thefts Have Increased Home Buyers’ Drive for Garages

The amenity is growing in importance, and some affluent house hunters are avoiding downtown neighborhoods where street parking is the norm.

An “epidemic” of car thefts in Toronto is making garages an even more prized commodity—and some luxury home buyers are avoiding neighborhoods where secure parking is scarce, according to local agents.

A car was stolen every 40 minutes in Canada’s largest city last year,  police chief Myron Demkiw told a government meeting earlier this month, with losses totaling nearly C$800 million (US$590 million). There have also been 68 carjackings so far in 2024, the chief said, a 106% increase over the same period last year.

In affluent downtown neighborhoods like the Annex, “a lot of homes are more than a century old and were designed without garages or dedicated parking,” said Christopher Bibby, a broker with Re/Max Hallmark/Bibby Group Realty. “Would a buyer change a home-purchase decision because of a garage? If they’re really concerned about a high-end vehicle, they’ll most likely focus on a neighborhood further uptown with an enclosure for cars.”

Adam Brind, an agent with Sotheby’s International Realty Canada, echoed that sentiment.

“If someone’s careful about their cars, they’re probably not going to look closer to downtown,” he said. “If you have three Bentleys, or something like that, you’re going to look in an uptown neighborhood. Do people make decisions based on garages? Absolutely. Some people will pass on even the nicest house if there’s no parking.”

In a 2023 report titled “Auto Theft Is a National Crisis,” the Insurance Bureau of Canada revealed that the country’s private auto insurers paid out C$1.2 billion in theft claims in 2022—three times more than what was paid in 2018. That trend continued to climb in the first half of 2023.

The auto theft increase is especially acute in Toronto. Of the over C$700 million in losses across Ontario, C$500 million was in the Greater Toronto Area alone, the organization said. The Canadian Finance and Leasing Association estimated vehicle theft in Toronto has surged 300% since 2015.

According to Équité Association, which supports Canadian insurance companies, the Honda CR-V, Lexus RX Series and the Dodge RAM 1500 Series were the most-stolen cars in Toronto. While some homeowners have simply switched cars, others are sticking to their favored models, despite the risks.

Meanwhile, some home sellers are benefiting from the rash of thefts.

“You can ask more for a home in [wealthy central neighborhoods] Rosedale or Summerhill if you have a garage,” said James Milonas, an agent with the Agency. “These are mostly older homes with small lots.  Houses with garages are generally new builds,” rare in an area like Rosedale, with its protected heritage architecture.

“In condos, parking already comes at a premium, and can cost from C$80,000-C$100,000 just for a garage spot,” Milonas said. But even a subterranean parking slot is no guarantee of safety.

“I have a client in the west end whose car was stolen from level P4,” he said.

These days, a home with a garage can now command a premium of C$50,000-C$100,000, said Anita Springate-Renaud, an agent at Engel & Volkers Toronto Central. “A garage would cost you that much to build anyway, if you’re even permitted to do it. But if you’re spending C$5 million on a house in [affluent northeast enclave] Leaside, for example, you’re going to have a garage,” she said.

In some neighborhoods, the difference between a home that only has street parking and one with some kind of parking, even a front pad, could be as much as C$250,000, Bibby of Re/Max said.

The car-theft “epidemic” has Toronto residents so rattled that luxury buyers aren’t just asking for garages, according to Christina Clavero of the Agency.

“They’re asking if homes can be gated,” she said. “Ten years ago, no one ever brought that up. The perception is that it adds a layer of security. They want to know if gating is permitted, or even possible, where they’re looking to buy. Gates can cost C$10,000-C$12,000. So if you’re a seller, and you’re able to install them, you’ll get a return on your investment for sure. Everyone is talking about this, and everyone knows someone who’s had a car stolen.”

But Brind said some buyers are resigned to living where they want and dealing with potential consequences later.

“We’re a city of more than 6 million people with a very limited stock of detached homes,” Brind said. “So some people are just willing to take the risk, own the car and live closer to downtown.”