Toronto’s strong job market, cultural diversity and internationally recognized quality of life is attracting more newcomers to the area every year. The GTA’s housing supply, however, cannot keep up with the increase in population, which has forced many new homebuyers back to the drawing board.
Adding insult to injury, even the majority of new rentals under construction are luxury units, while many of the homes for sale are large and unaffordable. What most first time homebuyers want are affordable options such as townhomes, smaller stand-alones and non-luxury apartments.
It comes as no surprise that there is not enough affordable housing being built in Toronto. For the younger population looking to purchase their first piece of real estate, this has become a major issue. If you are a millennial searching for a place to call home in Toronto, your best chances in these current conditions are to wait it out – or – look to the baby boomers to downsize or age out of their housing.
Research for the Toronto Region Board of Trade shows 51% of people aged 18 to 39 want to own a detached house in Toronto, where detached resale homes cost $1.6 million on average.
If you are willing to look outside of city limits, however, you can find new units in rural Ontario in the York Region or Halton, where according to ontarioplanners.ca, 761,000 homes are planned to be constructed by 2031.
Together with the fact that Toronto is the fastest growing city in North America and land is becoming hard to come by, it doesn’t look like demand for housing will be slowing down any time soon.
There is a silver lining. According to the Canada Mortgage and Housing Corporation, “Across Ontario, prospective buyers should expect more choice by 2020 while owners and investors should dampen their price and return expectations.”
This is good news, as many of the GTA’s in-demand jobs are located in the city. With more tech companies moving downtown, recruiters will want to attract the best talent and also hope to entice them with affordable housing options. In short, businesses must be able to retain young professionals for our economy to succeed.
We need to take a closer look at what we’re building in order to diversify our supply, afterall, all Torontonians deserves a place to call home.