How the Current Market Has Created Generational Opportunity for House Hackers

The Toronto real estate market, with its recent fluctuations and challenges, has inadvertently created a unique window of opportunity for house hackers. House hacking, a strategy where homeowners use their property to generate rental income, is increasingly becoming a viable option for savvy investors and first-time buyers looking to mitigate high mortgage costs. Here’s how the current market conditions have paved the way for generational opportunities in house hacking.

Market Overview

May 2024 saw a significant decline in home sales in Toronto, with a 21.7% drop compared to May 2023. Despite this, there was a 21.1% increase in new listings year-over-year. This increase in inventory, coupled with a slight decrease in average selling prices (down 2.5% from May 2023), presents an attractive scenario for potential buyers, particularly those interested in house hacking.

Lower Prices and Increased Inventory

The average selling price in May 2024 was $1,165,691, down from $1,195,409 in May 2023. This slight reduction in prices, along with the increase in available listings, means more options and better negotiating power for buyers. For house hackers, this translates to more opportunities to find properties that can be partially rented out to offset mortgage payments.

Interest Rates and Future Outlook

While high interest rates have been a deterrent for many potential buyers, they have also created a buyer’s market. Recent polling indicates that home buyers are waiting for clear signs of declining mortgage rates. As borrowing costs are expected to decrease over the next 18 months, more buyers are likely to enter the market. This anticipated influx includes many first-time buyers who could leverage house hacking to make homeownership more affordable.

The House Hacking Strategy

House hacking involves purchasing a property and renting out parts of it, such as basements, additional units, or even individual rooms, to generate rental income. This income can significantly offset the costs of homeownership, making it an appealing strategy for those looking to build wealth through real estate. With the current market conditions, house hackers have an increased selection of properties to choose from and can benefit from slightly lower prices and potentially better financing options in the near future.

Benefits of House Hacking in the Current Market

  1. Reduced Mortgage Burden: By generating rental income, house hackers can reduce their monthly mortgage payments, making it easier to afford properties in high-demand areas like Toronto.
  2. Increased Equity: As property values appreciate over time, house hackers build equity more quickly due to their reduced out-of-pocket expenses.
  3. Learning and Experience: House hacking provides practical experience in property management and real estate investment, which can be valuable for future investments.
  4. Flexibility and Security: Having rental income provides a safety net that can help cover mortgage payments during economic downturns or personal financial challenges.


Generational Opportunity

The current market conditions offer a generational opportunity for house hackers. The combination of lower prices, increased inventory, and the potential for decreasing interest rates creates a perfect storm for those looking to enter the real estate market with an investment mindset. For younger generations, house hacking can be a strategic way to achieve homeownership while building wealth and financial security.


Toronto’s real estate market, despite its recent challenges, offers unique opportunities for house hackers. The current conditions are favorable for those looking to leverage their properties to generate rental income and offset mortgage costs. As the market evolves, house hacking could become a key strategy for many aspiring homeowners and investors, providing a pathway to financial independence and long-term wealth.

For those interested in exploring house hacking opportunities, now is the time to act. The market’s current dynamics present a rare chance to secure properties that can serve both as homes and as income-generating investments. Embrace this generational opportunity and take the first step towards a more financially secure future through house hacking.

Written by: Katrina Doucett