Tag Archives: housing affordability

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What Bill 108 means for housing affordability in the GTA

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What Bill 108 means for housing affordability in the GTA

Bill 108, the More Homes, More Choice Act, received Royal Assent on June 6. The policy changes are intended to improve housing affordability in the GTA by ensuring cost certainty for development projects, reducing red tape and shortening the time frame for land use approvals. This will enable the delivery, more quickly, of more quality places to live and work.

Let’s take a look at the changes to the Development Charges Act (DCA), which enables municipalities to impose charges on development to pay for municipal services such as roads, water and public works. Bill 108 proposes to narrow the range of services for which development charges can be imposed in order to align with the new Community Benefits Authority (CBA), which will fund soft services like daycare centres and libraries. Development charges would then be imposed for certain hard services, like water, roads and transit. Changes to the DCA will also increase predictability for the industry and for consumers by allowing for development charges to be locked in earlier in the development process.

The government’s key objective in introducing changes to the DCA is to make housing more affordable and provide more certainty about some of the costs associated with building housing in the GTA. Development charges account for approximately 10 per cent of the cost of a new home across the GTA and have been rising quickly. These changes make upfront development costs more predictable and transparent, benefiting the new home buyers who ultimately pay for these costs in the price of a new home.

Rental housing is not left out. In order to support a range and mix of housing, including new rental buildings, changes allow for the deferral of development charges for rental housing and not-for-profit housing until occupancy, with payment occurring over five years, and freeze development charge rates at an earlier point in time. This provides an incentive, and reduces barriers, to build rental and not-for-profit housing by allowing for an amortization of some of the upfront costs over a period of time.

Speeding development

An overall focus on speeding development and reducing duplication is woven throughout Bill 108 and gives communities and the development industry more confidence on what they can build and where they can build it. It can take years before shovels can break ground on a new housing project. Some government policies and processes are duplicated and can create delays for no reason, which drives up costs for new home buyers. Complex administrative red tape can slow down developments as a project can face dozens of municipal, regional and provincial studies, reports, checklists, plans and standards required as conditions of approvals, many duplicate. This is in part why it takes 11 years to complete a lowrise project and 10 years to complete a highrise project in the GTA.

Lastly, the changes provide more clarity when it comes to being able to build denser communities near transit nodes, in areas where it makes sense due to investments in infrastructure that have been made to support growth. It will now be easier and faster to build more housing, including affordable housing, near transit. Municipalities will get help to implement community planning permit systems near major station areas and provincially significant employment zones, which will streamline planning approvals to 45 days. Transit supportive housing just makes good planning sense.

Desperate needs

As the government moves toward developing regulations to support Bill 108, there will undoubtedly be lots of discussions. It would serve us well to remember that the changes are about encouraging more housing that the region desperately needs, in the right mix, quicker, near transit and at a price the average resident can afford. It’s hard to argue with that.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD). bild.ca

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Toronto City Hall

City of Toronto councillors’ decision ‘irresponsible,’ will worsen housing affordability and supply problems

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City of Toronto councillors’ decision ‘irresponsible,’ will worsen housing affordability and supply problems

Toronto City Hall

The Building Industry and Land Development Association (BILD) is outraged by the announcement made today by City of Toronto councillors Joe Cressy, Mike Layton and Kristyn Wong-Tam. The trio said they would red light any development that supports council approved TO Core Plan, ignoring the direction given by the Minister of Municipal Affairs and Housing’s approved plans. These actions are a clear example of political interference that slows the development of new housing and increase costs.

Blatant disregard

“This blatant disregard of provincial policy is the opposite of a housing strategy, in fact it’s an anti-housing strategy,” says Dave Wilkes, president and CEO of BILD. “The net impact will add cost to the City, add cost to new home purchasers, increase the delays of much needed livable housing close to transit and lengthen approvals times as challenges and appeals are undertaken to ensure that the law is respected,” adds Wilkes.

It was the City of Toronto’s decision to file the Official Plan Amendment for TO Core with the province under Section 26 of the Planning Act. This rarely used mechanism requires ministerial approval and is non-appealable. Disliking the results of this decision, the councillor’s statements to developers that they will de-prioritize projects that are in accordance with the Minister of Municipal Affairs and Housing’s decision and not the City’s version of the plan is like asking them to take sides in schoolyard spat. Councillors Cressy, Layton and Wong-Tam are disregarding the planning process, abdicating their responsibility and adopting planning by threat.

“The decisions to amend the official plans just prior to the last election was politically motivated and went against the recommendations of the City’s own planning staff,” says Wilkes.

Desperate need

“More housing is desperately needed to accommodate growth in the region. It makes sense for this type of housing to be built in places that can leverage existing investments in infrastructure and be transit supportive. We are calling on Toronto City Council to take the necessary steps to address housing supply and affordability in Toronto.”

The provincial government rightly recognizes that changes are desperately needed to provide adequate and affordable housing to a growing province. More than 115,000 new residents are expected in the GTA every year through 2041 and the population is set to grow by 40 per cent. Meeting this generation challenge will require policies that enable housing supply and affordability, not illegal actions that add cost, delays and restrict supply.

BILD is the voice of the home building, land development and professional renovation industry in the GTA. With more than 1,500 member companies, the industry provides $33 billion in investment value and employs 271,000 people in the region.

TREB reminder

The Toronto Real Estate Board is also concerned about the councillors’ decision.

“With some City of Toronto councillors announcing plans that could add obstacles to the creation of new housing supply in their wards, TREB is reminding all levels of government that housing supply is one of the most important issues in Toronto and the GTA, and is encouraging cooperation between governments,” the organization says. “TREB has been at the forefront in calling for governments to do what they can to ensure an adequate, appropriate and affordable supply of housing for the Toronto and GTA real estate markets.

“This is an issue that will require both provincial and municipal government efforts and policy initiatives from various perspectives, including minimizing unnecessary red tape, while maintaining the high quality of life that makes Toronto and the GTA such a desirable place to live, work, and play.  TREB is encouraging provincial and municipal decision makers to work cooperatively to make the interests of homebuyers their first priority.”

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Three opportunities to positively impact housing in 2019

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Three opportunities to positively impact housing in 2019

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In 2018, the underlying issues impacting housing supply in the GTA and in turn the impacts on housing affordability, cost of living and its broader societal impact were a defining part of the public debate of the future of our region. Population growth combined with restrictive regulations, bureaucratic red tape, added costs and infrastructure challenges have created a generational challenge for the region. As we look forward, there are three opportunities to have a positive impact on these issues in 2019.

Housing Supply Action Plan

In late November, the government of Ontario announced that it would be developing a Housing Supply Action Plan. The provincial government rightly recognized that strong demand for housing and limited supply in Ontario has resulted in rapidly rising housing costs over the last few years, and that in fast growing areas like the GTA, high housing costs and rents are squeezing families and individuals out of the market. The Province is looking at what can be done to speed up the approval process so new housing can be built at a faster pace, how to encourage the right housing mix to be built, and the impact that high land costs and fees and taxes are having on housing prices. In addition, the action plan will look at home rental and ownership, not simply one or the other. These important initiatives are a great opportunity to begin to address the fundamental causes of housing affordability.

Revisit the stress test

While the issue of housing affordability is firmly on the provincial agenda, pressure is now growing on the federal government to consider the impacts of its mandated mortgage stress test. The program has succeeded in balancing the hot 2017 market, but is having a disproportionate impact on young and first-time homebuyers. The test, in effect, reduces the maximum amount of a mortgage that a home purchaser can borrow by roughly 20 per cent. Young and first-time homebuyers are the most likely to borrow close to their maximums, however, they also have the longest horizons for repayment and are often in the growth phase of their careers and earning potential. A growing chorus of industry professionals are urging Ottawa to fine-tune the approach and perhaps the potential for a one-time, longer amortization period for first-time buyers can provide some relief in 2019.

Lastly, municipalities can no longer ignore the issue or the role they must play as a partner to industry and the other levels of government in finding meaningful solutions to this issue.

Municipal involvement

During the fall municipal elections, voters in the GTA ranked housing affordability as a top priority for new local governments and the need to increase housing supply as a key mechanism to address  affordability was supported by nine out of 10 respondents to an IPSOS poll conducted by the industry last fall. With new councils and mandates in place, now is the time for new ideas.

This must be the year of action on this issue. With the arrival of 115,000 new residents to the GTA every year, and as we fall short in providing new housing at the levels required, we cannot afford to wait.

Dave Wilkes is president and CEO of BILD (Building Industry and Land Development Association), and can be found on: Twitter.com/BILDGTA) Facebook.com/BILDGTA YouTube.com/BILDGTA and BILD’s official online blog: BILDBlogs.ca

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Inclusionary Zoning: Collision Course or Opportunity?

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Inclusionary Zoning: Collision Course or Opportunity?

As we prepare to enter 2019, newly elected governments at all levels think solutions the “affordable housing crisis” might it be found in a new regulation — inclusionary zoning. Are we on our way for a severe collision course and another regulatory disaster?

In the dying days of the Kathleen Wynne government, Toronto was given the regulatory authority of what’s being called inclusionary zoning — the right of a municipality to designate or impose a certain number of units of a new development as “affordable.” The definition of affordable and how the inclusion is to be effected have yet to be defined — and may never be — but a negotiated settlement may be part of a site plan approval or subdivision agreement.

This may be the collision course. The unintended consequence will lead to higher prices for market housing and ultimately less affordable accommodation to subsidize the designated affordable units.

And many questions remain: Is inclusionary product contained within an existing building or allocated as cash in lieu of a separate affordable housing project? Are these rental or ownership units and who manages or owns the block of units? These questions are yet to be answered, and that may be a good thing. Let the creativity of each developer and municipality come together to find innovative solutions on a site-specific basis — much better than an arbitrary set of rules.

I recently met with Fred Heller, a long-time friend of the housing industry, who is part of a relatively new non-profit builder called Trillium Housing, which is advocating for modest income families to provide “housing affordability.” The Trillium model may help avoid an inclusionary zoning collision and, in fact, provide a viable alternative to affordable product with little or no market price distortion.

What Trillium does is provide financing that bridges the gap between the house price and what the families can afford for a first mortgage, all within the province’s affordable housing income guidelines. The beauty of the program is that the Trillium Mortgage doesn’t have to be repaid until the house is sold or refinanced and, better still, the consumer makes no scheduled payments on their Trillium Mortgage. Trillium gets repaid when the property is sold, plus Trillium earns its portion of the equity appreciation. The consumer down payment is as low as 5 per cent and the Trillium loan is considered equity, so there is no CMHC insurance fee on the first mortgage. A $100,000 Trillium mortgage applied against a $400,000 condo means $600 per month lower carrying costs and $24,000 lower qualifying income. This means a family of a modest total household income of about $70,000 per year could afford this home, even with the tough new bank qualifying rules. Not only does Trillium bring financing to the table, it works with the developer, the municipality and others to source the funding. Just imagine for a moment a municipality suggesting that in order to meet affordable housing targets they might just waive all fees and charges associated with a new home — currently these charges range from $100,000 to $150,000 per unit — and imagine the developer, who has to front these charges anyway, instead participates in a non-profit foundation that funds a Trillium-like mortgage. A WIN-WIN-WIN for government, developer and consumer — and no inclusionary zoning collision.

Interesting times ahead for 2019. With programs like Trillium, innovation and creativity will soar and the objective of providing more affordable housing is achieved!

Andrew Brethour is chairman and CEO of PMA Brethour Realty Group.

http://www.pmabrethour.com

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5 steps

5 steps to solving the housing affordability issue in Ontario

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5 steps to solving the housing affordability issue in Ontario

5 steps

Promising to create more housing supply was the first step, now industry leaders are calling on the Ford Government to action solutions that will bring much-needed supply into the marketplace and help solve the housing affordability issue facing many Ontarians.

This week, leaders from housing associations – the Ontario Real Estate Association (OREA), Ontario Home Builders Association (OHBA) and the Federation of Rental-Housing Providers of Ontario (FRPO) – gathered at the second annual Housing Summit event to examine bold policy prescriptions that will help Millennials get their hands on the keys to their first home.

“Keeping the dream of home ownership alive in Ontario requires bold policies and action from the provincial government,” says Tim Hudak, chief executive officer, OREA.

“First and foremost, to get more new homes in the marketplace, the building approvals process must be streamlined and zoning updated to allow for more homes in the right places. The best and fastest way to give Ontario’s first-time homebuyers a break is to eliminate the punishing land transfer tax for first-time buyers.”

“#Homebelievers know that government can support more housing choice and supply needed to make the great Canadian dream of home ownership a reality in existing, expanding, and established communities across Ontario,” adds OHBA chief executive officer Joe Vaccaro.

As advocates for greater home supply and home affordability in the province, OREA, OHBA and FRPO say the solutions to keeping housing within reach for young Ontarians include:

1 Speed up the planning approvals process

The home development approvals process can take up to 10 years in some parts of Ontario. Better alignment of municipal and provincial housing priorities, will get new homes to the market faster.

2 Build more homes and build them higher around and above transit stations

Use “As of Right” zoning to ensure housing intensification along rail transit lines and stations, exactly where many Millennials want and need them.

3 Provide first-time home buyer tax relief

Eliminate the land transfer tax for first-time homebuyers or dramatically increase the current rebate offered to first-timers.

4 Bring back the Ontario Municipal Board

The traditional role of the OMB has been to take the NIMBY out of housing decisions. Bringing back the OMB means evidence-based planning decisions, which will create more housing supply and choice.

5 Create new rental stock by reducing barriers and red tape

Adjust the annual rent increase guideline to CPI plus two per cent, implement a 20-year rent control rolling exemption on new construction and maintain vacancy decontrol.

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

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

Millennials Pic

There is great concern among GTA Millennials that they will be unable to afford a home, according to a new poll from the Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB). 

The fear goes deeper, as GTA residents also expressed a lack of confidence about the likelihood their children will be able to remain in the communities where they grew up.

“According to a recent Centre for Urban Research and Land Development study, there are about 730,000 Millennials living in the Greater Toronto and Hamilton Area who may be planning to move on from living in their parents’ homes and from sharing a dwelling with roommates in the next 10 years, potentially creating 500,000 new households,” says Dave Wilkes, BILD President and CEO.

KEY POLL RESULTS

When considering the issues in the municipal elections on Oct. 22, GTA residents say they are concerned with the ability of today’s youth to afford a home in the GTA, including:

  • 94 per cent of respondents between the ages of 18 to 35
  • 84 per cent of respondents between the ages of 35 to 54
  • 80 per cent of respondents age 55 plus
  • 88 per cent of women and 82 per cent of men

Interestingly, although Millennials are concerned about the ability to own a home, they are also the most optimistic group regarding housing supply, with 41 per cent of them believing that the GTA is well prepared to provide housing for the number of new residents that settle here every year. This is substantially higher than those age 35 to 54 (31 per cent) and those over 55 (27 per cent).

GTA residents are pessimistic in terms of their ability to achieve home ownership, as well as their children’s future abilities to afford homes in their communities. There is also a consensus among residents that the GTA has an inadequate supply of affordable housing being built, or that the city will be able to accommodate the 115,000 new residents that enter every year.

Source: 2018 Ipsos
Source: 2018 Ipsos

When picking a new home, 60 per cent of GTA residents say they value a neighbourhood that is walkable and bikeable, in addition to being within proximity to shopping, entertainment and government services. This is closely followed by those who prefer access to convenient transit (56 per cent) and proximity to work and school (54 per cent).

Nearly seven out of 10 respondents feel that their children will be unable to afford a home in the community where they grew up. These respondents agrees it is important for young families to be able to afford to live and work within the GTA without having to deal with long commutes.

When asked, “To what extent do you strongly or somewhat agree or disagree with the following”:

  • 92 per cent agree that the dream of home ownership is becoming more difficult to achieve for young people living in my city
  • 86 per cent agree that it is important that young families can afford to live and work within the GTA without having to commute over an hour to get to work
  • 39 per cent agree that there are enough homes being built in my city to help keep housing affordable
  • 33 per cent agree that the GTA is well prepared to provide housing for roughly 115,000 new residents that settle here each year
  • 33 per cent agree that my children (or my friends’ children) will be able to afford a home in my community when they grow up

 

MILLENNIALS MOVING OUT

The best public policy is proactive, not reactive,” says Garry Bhaura, president of the Toronto Real Estate Board. “We hope these poll results demonstrate that the time for municipal decision-makers to start thinking about housing choice and supply for all GTA residents who want to own a home is now.”

“In the next decade, we are likely to be part of a significant housing shift in our region, as a large wave of Millennials start looking for a place to live of their own,” adds Wilkes. “Add the estimated 115,000 new residents that come to the GTA every year, and the area will see itself in a housing crisis. I urge voters and candidates to learn more about BILD’s recommendations at buildforgrowth.ca.”

“With a municipal election just a few short weeks away, the public has an opportunity to ask candidates to commit to policies that will make it easier to fill their housing needs,” says John DiMichele, chief executive officer of TREB. “GTA homebuyers do not have adequate choice in housing available for sale or rent, and municipal government policy is one of the key reasons.

DiMichele suggests GTA residents visit UnlockMyHousingOptions.ca to send messages to candidates.

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Build For Growth: Housing Affordability

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Build For Growth: Housing Affordability

Band-Aid solutions will not address a generational challenge

It seems that every month or so, a new poll is released that shows that housing affordability is top of mind for GTA residents, and almost every week media covers the issue from a variety of angles. Commentators examine residents’ ability to purchase a home, the percentage of income spent on rent, the impact of new government rules, housing availability and the far-reaching societal consequences of the current situation.

So far, government interventions have focused on the demand side, including efforts to keep rent down through rent control, increasing the cost of housing for non-residents through the Non-Resident Speculation Tax, and more stringent mortgage qualification requirements. These steps have had the desired cooling effect but, as evidenced by experience in other markets, the effects may be transitory as the market adjusts. These are Band-Aid solutions that address the symptoms but do not deal with the fundamental issue. If we are to truly solve the challenges facing the GTA housing market, governments also need to address the supply side of the equation.

Unfortunately, it takes a long time to add new housing in our region. The rules and processes that worked in the past now struggle to keep up. That means that these days it takes approximately 10 years to complete a new highrise or lowrise project in the GTA. It is not just a question of the actual construction, but also the planning, zoning, approvals, infrastructure and servicing of land required to support development. This slow pace of bringing new homes to market has two practical implications. First, it exacerbates tight supply in a high-demand region, keeping prices up. Second, it means that unless current population projections of 9.7 million people in the GTA by 2041 are wrong, or there is a significant increase in migration away from the region, affordability challenges will be with us for some time.

As the municipal election campaigns unfold, we have heard pledges focused on increasing housing supply. These campaign promises have tended to focus on increasing the supply of affordable rental properties rather than on increasing housing supply overall. There are two problems with this approach. Almost two-thirds of Canadians live in homes they own rather than rent and these efforts do little for those aspiring to own. More importantly, and sadly for those trying to put an affordable roof over their heads today, given the lead time for adding new housing stock, these campaign pledges will not materialize as new homes any time soon.

If there is to be a meaningful solution to the generational housing challenge facing the GTA, governments must focus on removing the barriers to adding new housing supply, at the pace required, in the density desired under provincial growth plans, and preferably with access to transit.

That is why, as the municipal elections approach, we are encouraging GTA residents to have conversations with their local candidates about housing affordability and supply. You can send an email to your candidates at BuildForGrowth.ca

Dave Wilkes is president and CEO of BILD (Building Industry and Land Development Association), and can be found on: Twitter.com/BILDGTA) Facebook.com/BILDGTA YouTube.com/BILDGTA and BILD’s official online blog: BILDBlogs.ca

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THE INDUSTRY LEADER: Housing policies must focus on supply

THE INDUSTRY LEADER: Housing policies must focus on supply

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THE INDUSTRY LEADER: Housing policies must focus on supply

Not enough new housing is being built for sale or rent and this results in higher prices, higher rents and long waits lists.

by Dave Wilkes
BILD

The other day I was listening to pundits on talk radio debating the issue of housing affordability — and what can be done to address the high cost of putting a roof over your head.

It sounded like the experts were talking right past each other, apparently discussing completely different issues. I realized it was because their definitions of housing affordability were different.

It seems to me, though, that some of the solutions can be the same. Housing affordability is a complex subject. At the risk of oversimplifying, there are really three different definitions. The first is housing — houses and condos — that the average family can afford to buy. The second definition is housing that the average person can afford to rent. And the third is not-for-profit rental housing, where collective ownership (co-op) or a degree of social assistance (subsidized housing) helps ensure that the cost of housing can be borne within the income of the resident.

All of these definitions of housing affordability are valid and all come with specific issues to address if affordability is to be tackled as an issue. Unfortunately, as is often the case with highly political topics, it is the differences that get debated — winners and losers get picked and opportunities get missed.

What is common to all three definitions is lack of supply. Not enough new housing is being built for sale or rent, and there is not enough not-for-profit rental housing to meet the need. This results in higher prices, higher rents and long wait lists. A number of factors affect the supply of all three forms of housing. All are subject to the same lengthy bureaucratic approvals process prior to being built. All three require land that is adequately serviced with existing infrastructure that can accommodate the increased usage (for infill projects) or new infrastructure if it is an entirely new development. Lastly, all three forms of housing are subject to layers of regulation, reliance on community acceptance and the political will that exerts influence on building projects around the GTA.

Any one of these factors can add cost, impact the number of new units that come to market, delay new housing from being built or halt construction entirely.

On the cost side, newly built homes that fall under the first two definitions are also subject to government fees and charges that increase purchase price or impact rental costs. BILD recently published a study on the government fees, taxes and charges applied to new homes in the GTA. It demonstrated that the layers of tax-on-top-of-tax added almost 25 per cent, or $186,500, to the price of an average single-family home in the GTA.

In the lead-up to this year’s municipal election, we need our governments not to pick winners and losers, but to focus on housing policies and reforms that can have broad benefits and increase housing supply.

David Wilkes is president and CEO of the Building Industry and Land Development Association (BILD).

He can be found on Twitter, Facebook, and BILD’s official blog.


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Home Realty : The Missing Middle

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Home Realty : The Missing Middle

Creative concepts could do a lot help housing affordability

It’s the one thing everyone in the GTA seems to be talking about these days: the soaring price of real estate. It’s a sticky wicket to be sure, and it’s left many wondering if they’ll ever be able to find a place to call home in this bustling metropolis. Here are three creative concepts that could do much to alter the affordability equation.

LANEWAY HOUSING

The City of Toronto has more than 2,400 laneways and publicly owned corridors covering 250 linear kilometres. Laneway houses are small homes built above garages that face these laneways. Development of such secondary suites — which are serviced from the main house like a basement apartment — could inject considerably more affordable homes into the Toronto rental market. And advocacy groups, like Lanescape and Evergreen, are partnering with the city to look at ways to clear the bureaucratic path toward the development of laneway housing.

This kind of gentle intensification can add value to existing properties for owners, and, in providing a much needed infusion of supply into the rental market, provide more people access to affordable housing.

ILLUSTRATION COURTESY LANESCAPE

PARASITE HOMES

They’re known in Paris as “parasite homes,” and they would be an ingenious solution to the affordability problem here in the GTA. These apartments are perched upon the roofs of existing buildings. The prefabricated units are built offsite then bolted to the structure with steel supports, a construction process that takes under a year. And these units are priced 40 per cent cheaper than comparable properties.

Paris is calling for 70,000 new dwellings to be built each year, and parasite homes are a good way to squeeze all those new homes into the densely populated French capital. Parasite homes are an innovative idea and one that could help Toronto to provide more people with housing options they can afford. And building owners would also stand to make a good return for thinking a bit outside the box.

IN-LAW SUITES

Don’t let the name fool you. In-law suites — secondary dwellings within a home — can be rented out to anybody you choose. And they’re growing in popularity as more and more people in the GTA face affordability challenges.

In-law suites are cheaper to rent than standalone apartments and they provide an effective and relatively easy way for homeowners to pay off their mortgages or pad their retirement incomes. Of course, these suites can be used to house aging in-laws (but it’s probably not cool to charge granny rent). Or, perhaps more common in today’s economy, it could be the cash-strapped younger generations remaining at home, but wanting an independent living situation.

Secondary flats typically include sleeping and living areas, a basic kitchen and a separate entrance. They can be created via a garage conversion or basement reno. A unit could be a bump-out or addition on the home. Or it might be a separate cottage or a back house on the property.

Owners could also create an in-law apartment by combining rooms in the existing house without changing the original footprint.

The governing bodies of the GTA have to be more creative and open minded in dealing with the shortage and affordability issues in our housing market.

Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. She has sold and overseen the sale of over $15 billion worth of real estate and, with Debbie at the helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. In2ition has received numerous awards from the Building Industry and Land Development Association and the National Association of Home Builders.

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CHBA president to talk housing affordability with feds

CHBA president to talk housing affordability with feds

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CHBA president to talk housing affordability with feds

Remi Network

Bob Finnigan, president of the Canadian Home Builders’ Association, or CHBA, heads to Ottawa this week to talk to the federal finance committee about housing affordability. Of particular concern for the group is one of the latest changes to mortgage rules, which expanded an existing stress test from a limited pool of prospective homebuyers to all insured borrowers.

The stress test raises loan eligibility rules by requiring prospective homebuyers to qualify for mortgages at a higher interest rate than what they will actually pay, as a way to gauge their ability to absorb interest-rate hikes. In some cases, the move disqualified prospective homebuyers who qualified for mortgages under the old rules, said Finnigan, and it has adversely affected markets outside of active regions such as Toronto and Vancouver.

https://www.reminetwork.com/articles/14503/


 

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