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Examining the GTA affordable homeownership crisis

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Examining the GTA affordable homeownership crisis

A definitive new book providing a deeper insight and understanding

A book titled “The GTA Affordable Home Ownership Crisis: A Deeper Understanding and the Pathway to the Solution” has just been released and is available to download online at affordablehomeownership.ca.

It is no secret that the problem of affordable homeownership in the GTA is out of control, and is especially a concern for the millennial population. A recent OREA/Nanos survey found that 58.7 per cent of nonmillennial Ontarians agree or somewhat agree that homeownership is unaffordable in their neighbourhood, while 41 per cent listed saving enough for a down payment as the most important barrier to owning a home.

With average new GTA condo prices at $500,000, average new GTA house prices at $1 million and resale at about $800,000, generally speaking, the next generation has little chance at homeownership without a significant financial contribution from their parents.

The book’s aim is to bring an understanding of the relevance and implications by exposing the drivers behind the problems and pointing towards a pathway to the solutions so that our children, and their generation, will not have to face a future without affordable homeownership.

The majority of GTA residents count their home as their largest asset. A future without affordable homeownership could hollow out the wealth of the middle class and have a catastrophic effect on the economy, for a generation.

The book identifies drivers of the crisis, such as excessive taxes on new homes and condos, excessive mortgage regulation, and the imbalance between supply and demand, but also offers creative solutions that can be applied in order to address the crisis in a responsible and timely way.

Written by R. Scott Davie, a leader in the sales and marketing of GTA new homes and condos for decades, and a trusted advisor to many of the GTA’s top developers, this book is rich with ideas and breaks down the elements of the crisis in an interesting way.

“The solution of the GTA homeownership crisis will only grow through understanding, resonating from professionals in the development Industry to the public, and it is only through public awareness that government and non-governmental organizations will have the motivation, and the ability, to make the needed changes,” says Davie.

“I wrote this book to make a relevant personal contribution towards solving the serious crisis of affordable homeownership by bringing awareness to the public, developers, their employees and consultants, and politicians. The hope would also be to generate a potential spark for additional creative solutions, not to make a profit of any kind,” he adds.

Recognizing that we live in an age that we are inundated with information, the book takes a concise and approachable magazine style format with pictures and infographics and is about a 30-minute read.

Written by R. Scott Davie, a leader in the sales and marketing of GTA new homes and condos for decades, for a limited time you can download a free copy at affordablehomeownership.ca.

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Detached homes

5 affordable neighbourhoods for detached homes in 416 and 905

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5 affordable neighbourhoods for detached homes in 416 and 905

Detached homes

by Wayne Karl

Looking for a detached home in the GTA and not sure where to look? Despite what recent reports would have you believe,  there are still some affordable neighbourhoods for single-family homes in the 416 and 905 areas.

Affordable being a relative word, of course, as compared to average prices. As of Sept. 30, 2018, the average price of a detached home in the GTA is $1.01 million – $1.34 million in the 416, and $905,722 in the 905.

Indeed, there’s been no shortage of stories recently about the challenges of the housing market – namely supply, pricing and affordability – on both the resale and new homes sides of the market.

The most recent, in fact, coming this morning.

“While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment,” Toronto Real Estate Board President Garry Bhaura said Oct. 3 in releasing TREB’s Market Watch Report for September. “As the GTA population continues to grow, the real challenge in the housing market will be supply rather than demand. The Toronto Real Estate Board is especially concerned with issues affecting housing supply as we move towards municipal elections across the region.”

For the purposes of this story, let’s focus on resale homes. (We’ll prepare a follow-up focusing on new detached homes in a subsequent report in the coming days.

First, let’s look at some of the hottest areas of the GTA in terms of price growth.

Top five GTA neighbourhoods for price appreciation

Detached homes in 2018
NEIGHBOURHOOD Q1 Q2 % Change
Palmerston-Little Italy,
Trinity-Bellwoods $1.60M $1.87M 17
Brock $498,966 $573,951 15
The Beaches $1.32M $1.50M 13
Edenbridge, Humber Valley, Islington $1.43M $1.57M 10
Georgina $538,817 $590,255 10
Source: ReMax Integra Ontario-Atlantic Region, TREB

 

Double-digit price growth in one quarter is fantastic if you currently own in any of these areas. But if you were hoping to buy there, your purchase price just got a lot more expensive in a matter of months.

Now, let’s take a look at some of the comparatively more affordable areas for detached homes in the GTA.

 

MOST AFFORDABLE NEIGHBOURHOODS IN THE 416

Detached homes, Q2 2018
NEIGHBOURHOOD Average Price
West Humber, Claireville, Rexdale-Kipling,
and Thistletown-Beaumond Heights $732,854
Bendale, Woburn and Morningside $742,670
Malvern, Rouge $752,292
Rockcliffe-Smythe, Keelesdale-Eglinton West, Weston $783,141
Downsview-Roding, Glenfield-Jane Heights, Black Creek $859,215
Source:  ReMax Integra Ontario-Atlantic Region, TREB

 

MOST AFFORDABLE NEIGHBOURHOODS IN THE 905

Detached homes, Q2 2018
NEIGHBOURHOOD Average Price
Essa $547,970
Oshawa $556,309
Brock $573,951
Clarington $585,562
Georgina $590,255
Source: ReMax Integra Ontario-Atlantic Region, TREB

 

As you can see, some of the still-affordable areas for detached homes in the GTA – such as Brock (Durham Region) and Georgina – are also performing well in terms of price growth.

Durham Region, Simcoe County and Dufferin County, in short, are hot.

In particular, Brock  and Essa (Simcoe County), Burlington, Halton Hills, Brampton, Orangeville and Scugog are all showing promise in detached home price growth, according to ReMax Integra, Ontario-Atlantic Canada Region.

“After an extended period of housing market inertia, the floodgates are breaking open,” says Christopher Alexander, executive vice-president and regional director, ReMax Integra. “Upward movement in detached housing values and the threat of additional interest rate hikes in the future are prompting homebuyers to get off the fence and into the market. Rising consumer confidence, job security and an economy firing on all cylinders should continue to support healthy home-buying activity in the GTA for the remainder of the year and into 2019.”

Next in this series, we’ll explore some of the new home developments and buying opportunities in some of these areas, as well as those for multi-family homes and condos.

Wayne Karl is Senior Digital Editor at Homes Publishing. wayne.karl@homesmag.com

RELATED STORIES

Vast majority of GTA Millennials fear buying a home is out of reach, poll says

GTA housing market correction coming to an end, ReMax says

GTA new home market quiet in August

 

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