Commuting in Toronto: The Intersection of Housing Costs and Distance

Toronto's Housing Squeeze: How Far Will People Commute to Afford a Home?

Jordan Keane in Business & Economy August 2025 • 4 min read.

"Explore the income-based approach to modeling commuting distance in the Toronto area and discover the breaking point for affordability."

The Greater Toronto Area (GTA) is a hotbed of real estate activity, but it's also a pressure cooker for potential homebuyers. As housing prices continue to climb, many are forced to look beyond the traditional suburbs, a phenomenon known as 'drive until you qualify.' This means longer commutes and strained household budgets, raising a critical question: How far is too far to commute in the pursuit of affordable housing?

New research is shedding light on this complex issue, offering an income-based model to understand commuting distances in the GTA. This model considers the cost of driving, regional shelter costs, and the percentage of household income allocated to housing and transportation. It aims to estimate a feasible commuting distance from Toronto that doesn't break the bank.

Unlike traditional models that focus on workplace relocation, this approach examines residential choices driven by high shelter costs. It assumes that people want to maintain their current jobs in Toronto but are willing to commute from more affordable areas. The goal is to find a balance where housing is accessible without exceeding a reasonable budgetary constraint.

Decoding the Commute: Balancing Income, Housing, and Transportation Costs

Commuting in Toronto: The Intersection of Housing Costs and Distance

The core of this research revolves around a simple yet powerful concept: total cost of living (including shelter and transportation) must be less than or equal to a household's budgeted income. This constraint helps define the boundaries of feasible housing locations. If costs exceed income, a location becomes unsustainable, pushing residents to search further afield.

Researchers factored in several key elements to build this model:

Driving Costs: Calculated using distance from Toronto, average fuel consumption, and fuel prices.
Shelter Costs: Derived from regional curves representing housing costs at various distances from the city center.
Income Allocation: The percentage of after-tax household income allocated to shelter and transportation.

While driving time might seem like an obvious factor, the study focused on mileage. Mileage is a fixed measurement between two points, unlike driving time, which can fluctuate with traffic conditions. The research used Google Maps to determine driving distances, acknowledging that people generally use mileage as a reference for distance.

The Road Ahead: Finding Sustainable Solutions

This research highlights the growing challenge of housing affordability and its impact on commuting patterns in the GTA. As housing costs continue to rise, understanding the limits of commuting distance becomes crucial for both policymakers and individuals. By considering income, housing, and transportation costs, we can better address the need for sustainable and accessible housing solutions that don't require residents to sacrifice their financial well-being or endure excessive commutes.

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This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1016/j.rtbm.2021.100720,

Title: An Income-Based Approach To Modeling Commuting Distance In The Toronto Area

Subject: econ.gn q-fin.ec

Authors: Shawn Berry

Published: 20-01-2024

Everything You Need To Know

What is 'drive until you qualify' and how does it relate to Toronto's housing market?

'Drive until you qualify' describes the phenomenon where potential homebuyers in the Greater Toronto Area (GTA) are forced to look for housing in more distant, affordable areas due to rising housing prices. This results in longer commutes and increased strain on household budgets as residents seek to balance housing costs with transportation expenses and accessibility to jobs within Toronto.

How does the income-based model for commuting distance in the Greater Toronto Area (GTA) differ from traditional models?

The income-based model focuses on residential choices driven by high shelter costs, assuming individuals want to keep their current jobs in Toronto but are willing to commute from more affordable areas. Unlike traditional models that emphasize workplace relocation, this model prioritizes finding a balance where housing is accessible without exceeding a reasonable budgetary constraint, considering factors like driving costs, regional shelter costs, and income allocation.

What key elements are considered in the income-based model to determine feasible commuting distances in the Greater Toronto Area (GTA)?

The model incorporates several critical elements, including driving costs calculated based on distance from Toronto, average fuel consumption, and fuel prices. Shelter costs are derived from regional curves representing housing costs at various distances from the city center. Income allocation considers the percentage of after-tax household income allocated to shelter and transportation costs, ensuring the total cost of living remains within a household's budget.

Why does the research focus on mileage rather than driving time when assessing commuting distances in the Greater Toronto Area (GTA)?

The research emphasizes mileage over driving time because mileage is a fixed measurement between two points, offering a more stable reference for distance. Driving time, on the other hand, can fluctuate significantly due to traffic conditions, making it a less reliable metric for long-term planning and affordability assessments. Mileage provides a consistent baseline for calculating driving costs and evaluating the feasibility of commuting from different locations.

What implications does the research on commuting patterns and housing affordability have for policymakers in the Greater Toronto Area (GTA)?

The research highlights the urgent need for sustainable and accessible housing solutions that address the growing challenge of housing affordability. By understanding the limits of commuting distance and considering income, housing, and transportation costs, policymakers can develop strategies to reduce the financial burden on residents. This may involve initiatives such as promoting affordable housing options closer to employment centers, improving public transportation infrastructure to reduce commuting costs, and implementing policies that support a better balance between housing costs and income levels to prevent excessive commutes and financial strain on households.