Everyone says school rankings boost home prices in Toronto. But how accurate are they? Can they change? And should investors actually care?
We break down how school zones affect cash flow, appreciation, and long-term ROI.
Why School Rankings Matter — Especially for Home Buyers
School rankings have long been a major selling point in Toronto real estate. Whether you’re a parent planning for your child’s future or a homeowner thinking about resale value, the quality of nearby schools often plays a big role in where people want to live. And it shows in the numbers.
Homes located in top-ranked school catchments can command premiums of over 50% compared to homes outside those boundaries. These areas tend to have strong demand and stable price trends.
But here’s the thing most investors miss: paying more for a home in a top school district doesn’t necessarily mean you’re getting the best investment return.
The Investor Perspective: Cash Flow and Growth Aren’t Always in the Same Place
If you’re looking at real estate from an investor lens, your priorities are likely different from someone who’s buying a forever home. You want solid rental income, long-term appreciation, and smart leverage to grow your portfolio.
Top-ranking school districts might give you steady appreciation, but often come with high purchase prices — and that can eat into rents and cash flow. Cap rates (net rent yields) are lower.
That’s where gentrifying neighbourhoods come in.
Gentrifying Areas: School Rankings Lag, But Rents And Growth Don’t
Rents don’t vary as much between neighbourhoods as home prices do. That means when you buy in more affordable areas, your rental income stays solid, pushing your rental yield higher.
We’re not talking about sketchy areas nobody wants to touch. These are starter neighbourhoods that people actually want — just with lower prices and school rankings that don’t yet impress.
In many of Toronto’s lower-ranked school zones, prices remain affordable, driving strong rent yields. But here’s the key: while expensive, stable neighbourhoods deliver steady appreciation, it’s the gentrifying areas with lower school scores that often see higher overall price growth.
Think east end spots like East York, west end neighbourhoods such as Junction Triangle, Wallace-Emerson, and Carleton Village, plus some pockets in York. These places are in early gentrification stages — attracting young families, professionals, investors, new restaurants, cafes, and transit upgrades.
Schools may not top the Fraser rankings yet, but they usually improve as engaged families and resources move in. If you’re playing the long game and willing to accept some short-term trade-offs — like lower school scores — these neighbourhoods often offer stronger long-term appreciation and better yields than the pricey, “safe” areas.
10-Year Appreciation Table (2014–2024) across major Toronto regions
| Region | TRREB Zones | 2014 Avg Price | 2024 Avg Price | % Growth | Annualized Growth | Highlights |
|---|---|---|---|---|---|---|
| Downtown Toronto | C01, C02, C08 | ~$650,000 | ~$1,200,000 | +85% | ~6.4% | Strong condo influence; substantial growth, but recent plateau in 2022–23. |
| Midtown | C03, C04, C09, C10 | ~$700,000 | ~$1,380,000 | +97% | ~7.0% | Steady consistency; healthy mix of condo and low-rise demand from families. |
| North York | C06, C07, C12–C15 | ~$700,000 | ~$1,375,000 | +96% | ~6.9% | Solid demand across segments; some decline in condos post-2022. |
| Etobicoke | W06–W09 | ~$600,000 | ~$1,100,000 | +83% | ~6.3% | Mixed neighbourhoods: stable in Kept, weaker earlier in Rexdale/Bloor West. |
| West End | W01–W04 | ~$550,000 | ~$1,250,000 | +127% | ~8.5% | Junction, Wallace-Emerson lead, thanks to strong gentrification waves. |
| York (Old City) | W03–W04 overlaps | ~$525,000 | ~$1,200,000 | +129% | ~8.6% | Areas like Oakwood-Vaughan benefited heavily from urban reinvestment. |
| East End | E01–E04 | ~$550,000 | ~$1,200,000 | +118% | ~8.2% | Danforth, Riverside riding gentrification and improved amenities. |
| East York | E03 | ~$575,000 | ~$1,100,000 | +91% | ~6.7% | Balanced growth; functionally part of East End but with distinct identity. |
| Scarborough | E05–E11 | ~$500,000 | ~$900,000 | +80% | ~6.1% | Gradual growth driven by affordability, transit improvements, and demand. |
School Rankings Aren’t Set in Stone — They Change Over Time
Fraser Institute school scores for 2024 are based on standardized test results from the past five years. Below is a table showing the top schools from their latest rankings.
But keep this in mind: these scores don’t always reflect what’s happening right now — like neighbourhood shifts, funding changes, or new school leadership.
Top Toronto High Schools* – 2024 Fraser Institute Rankings
| Rank* | School Name | Score / 10 | Neighbourhood | Region | TRREB Zone |
|---|---|---|---|---|---|
| 1 | St. Michael’s Choir School | 10.0 | Church-Yonge / Downtown | Downtown | C08 |
| 1 | York Mills Collegiate Institute | 10.0 | York Mills | North York | C12 |
| 6 | Ursula Franklin Academy | 9.6 | High Park / Roncesvalles | West End | W01 |
| 8 | Lawrence Park CI | 9.5 | Lawrence Park | Midtown | C04 |
| 12 | Leaside High School | 9.2 | Leaside | East York | C11 |
| 16 | Cardinal Carter Catholic HS | 9.1 | Wilson Heights | North York | C06 |
| 20 | Bishop Allen Academy | 9.0 | The Queensway | Etobicoke | W07 |
| 20 | Malvern Collegiate Institute | 9.0 | The Beaches | East End | E02 |
| 24 | North Toronto CI | 8.9 | Yonge & Eglinton | Midtown | C03 |
| 24 | Humberside CI | 8.9 | Bloor West / High Park | West End | W01 |
| 24 | William Lyon Mackenzie CI | 8.9 | Bathurst Manor | North York | C06 |
| 28 | A.Y. Jackson SS | 8.8 | Hillcrest Village | North York | C15 |
| 28 | Earl Haig SS | 8.8 | Willowdale | North York | C14 |
| 28 | Harbord CI | 8.8 | Little Italy / Harbord | Downtown | C01 |
| 37 | Etobicoke School of the Arts | 8.7 | Mimico / The Queensway | Etobicoke | W06 |
* Notes:
- Only Toronto 416 schools shown (excludes York Region or Catholic HS outside city limits).
- Rankings are based on the 2024 Fraser Institute report.
Want the Best Appreciation? Look Beyond School Rankings
If you want the best appreciation, don’t get hung up on school rankings alone.
The biggest gains come from spotting neighbourhoods before they fully gentrify — places where new transit, rising population, and commercial investments are reshaping the community.
Areas like Mount Dennis, Birch Cliff, and Rockcliffe-Smythe may have lower school scores today, but they’re attracting young families and seeing major infrastructure upgrades.
When schools improve — as they almost always do — property values tend to jump. Smart investors look beyond the rankings and focus on where growth is just getting started.
But What If You’re Buying Your Primary Home?
Now, if you’re buying to live — school rankings do matter more. Not just because of quality of education, but also because they support long-term price stability.
Areas like Leaside, Lawrence Park, or Riverdale may not skyrocket overnight, but they’ll likely appreciate at a steady 5–8% annual rate based on long-term demand from families looking to stay in good school zones.
Just remember: this steady growth often comes at a cost — high entry prices, lower cap rates, and limited upside unless you’re buying undervalued.
Final Thoughts: Know What You’re Optimizing For
School rankings definitely matter — but they should match your goals.
If you’re buying a home for your family, a top school zone means stability, peace of mind for your family, and good long-term stability.
If you’re investing, the best ROI might be in the areas with room to grow — even if school rankings aren’t top-tier today.
Either way, understanding why a school score is low — and what’s changing in the neighbourhood — can be more valuable than chasing a perfect 10.
How We Can Help
At Elevate Realty, we work with both end-users and investors who want to build wealth through smart Toronto real estate.
- We track real estate trends
- We help you evaluate whether cash flow, appreciation, or both are possible
- We find properties in up-and-coming areas with strong upside
- And we guide you from analysis to purchase, renovationss, and rental setup
Want help deciding where to buy next — and whether school rankings should be on your radar?
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
This is for educational purposes only; it does not guarantee future performance or serve as financial, legal, or tax advice.
