A million new houses wanted in Ontario in subsequent 10 years to finish ‘merciless recreation of musical chairs’

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Rising house prices are causing many young families to drive until they qualify

Author of the article:

Stephanie Hughes

Publication date:

07 Oct 2021 • October 7, 2021 • 3 minutes read • 37 comments Supply bottlenecks in the greater Toronto area resulted in strong upward pressure on property prices.Supply bottlenecks in the greater Toronto area resulted in strong upward pressure on property prices. Photo by James MacDonald / Bloomberg

With Ontario’s population growing rapidly, a political think tank argues that Canada’s most populous province will need about a million new homes over the next 10 years.

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Ottawa-based Smart Prosperity Institute and Ontario Home Builder’s Association came up with nearly a million homes after examining how many homes and what types of homes are needed to meet the needs of an expected 2.27 million more people to cover that in the province over the next 10 years, according to the Ontario Treasury.

The report found that 910,000 homes would be needed for new families, 65,000 units would fill the current supply gaps in the market, and 25,000 would provide a cushion for any other unexpected additional population growth during that time. According to the report, 195,000 of the 910,000 units for new households, especially for couples who want to have children, will live in high-rise apartments and the remaining 715,000 in all other types of housing.

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“The goal of building 1 million new homes over the next 10 years is challenging for Ontario,” said Mike Moffatt, senior director of policy and innovation at the Smart Prosperity Institute. “The price, however, is considerable: to ensure a sufficient supply of high quality, available and accessible living space while at the same time promoting economic prosperity and enabling climate protection. Otherwise, Ontario will be unable to attract and retain the talent it needs to compete in the global economy. “

Supply bottlenecks in the Greater Toronto Area (GTA) put strong upward pressure on house prices, causing average sales prices to rise 18.3 percent year over year in September real estate data. According to the Toronto Regional Real Estate Board (TRREB) released Tuesday, the average cost of a home is now $ 1,136,280. The Committee urged governments at all levels to address this housing issue, which they believe is at “critical juncture”.

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  1. Toronto, the most populous city in the country, did not contribute to the surge in construction supply as home starts rose only 1.4 percent (or 500 units) compared to the 2015-2019 average.

    There has never been more housing under construction in Canada – but the city that needs it most is missing out on the boom

  2. None

    Ontario urged to overcome NIMBYism and change zoning laws to alleviate Toronto’s housing shortage

  3. The average sales price for all home types combined in Torotono rose 18.3 percent year-over-year to $ 1,136,280.

    The housing market in Toronto at a “critical point in time” as falling offers drive high prices up

Late last month, a report from RBC Economics found that there had been no more housing units under construction in Canada in the past 12 months, but that growth was not seen in places like Toronto. The city’s housing starts increased by only 1.4 percent (or 500 units) compared to the 2015-2019 average. This lags behind the national housing construction growth of 26 percent compared to the pace set between 2015 and 2019.

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Rising house prices are causing a number of young families to drive until they qualify, the report said. Between July 2019 and July 2020, 60,000 people left the city of Toronto and the Peel region for other parts of the provinces.

“Ontario’s housing market is a bit of a cruel musical chair game, with more and more people, especially young families looking for space to grow, leaving more expensive cities and scattering across the province in search of housing,” said Mike Collins-Williams, Chief Executive Officer of the West End Home Builders’ Association. “We need more housing and choice in communities across Ontario. The one million new apartments that will be needed in the next ten years to support and support young families can only be created if the local councils approve the necessary housing mix in their communities. “

• Email: [email protected] | Twitter: StephHughes95

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