Tag Archives: housing supply

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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Ontario housing plan

Ontario releases plan to address housing affordability and supply issues

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Ontario releases plan to address housing affordability and supply issues

Ontario housing plan

The Ontario government has released its plan to address housing supply and affordability, and homebuilders couldn’t be happier.

Steve Clark, minister of municipal affairs and housing today revealed More Homes, More Choice: Ontario’s Housing Supply Action Plan, a full-spectrum suite of legislative changes to increase the supply of housing that is affordable and provide families with more meaningful choices on where to live, work and raise their families.

“We’ve heard loud and clear from families across Ontario that finding housing that is affordable takes too long and costs too much,” says Clark. “After years of neglect by the former government, there is now a housing crisis in Ontario and the dream of ownership is out of reach for too many. Our plan will make it easier to build the right type of homes in the right places, giving Ontarians and their families more flexibility when looking for a home they can afford.”

GTA homebuilders, through the Building Industry and Land Development Association (BILD), applaud the action, calling it an important step to address the barriers to new homeownership and rental housing.

“The challenge is a basic one,” says Dave Wilkes, BILD president and CEO. “Previous government policies and procedures have created structural barriers to the efficient operation of the housing market which has resulted in a generational shortfall of housing. Today, the Ford government has signaled its intent to address this problem to ensure that the right type of housing is built at the right price across the Greater Toronto Area.”

Clark says the plan will require a province-wide effort that includes municipalities, non-profits and private industry and will also be a comprehensive all-of-government initiative that will include legislative amendments to 13 government Acts.

The new measures proposed in More Homes, More Choicewould streamline the overly complex development approvals process to remove unnecessary duplication and barriers, making costs and timelines more predictable. The plan would also streamline and simplify the process for creating new rental housing options.

As part of the action plan, our government is also launching A Place to Grow: Growth Plan for the Greater Golden Horseshoe,to address the needs of the region’s growing population, diversity and local priorities.

“Whether you are a first-time homebuyer, a family looking for a larger apartment to rent or a senior hoping to downsize, our action plan puts people first,” says Clark. “Combined with our government’s investment in renewed community housing, our Housing Supply Action Plan is sending a clear message that no matter what your situation you can count on our government to always put people first.”

Highlights of the plan

Local Planning Appeal Tribunal (LPAT):Changes will be introduced to allow LPAT to make decisions based on the best planning outcome and remove existing restrictions around the introduction of evidence. The number of adjudicators will be increased and case management powers introduced to acknowledge the need to address the backlog/housing supply.

Development Charges: To increase predictability for the industry and consumers around development charges, changes will allow for rates to be locked in at the time of complete site plan or zoning application. There are also provisions that defer DCs for rental buildings until occupancy.

Parkland/S37/Development Charges: A “community benefits authority” is to be introduced that both acknowledges the cumulative effect that taxes, fees and charges have on housing affordability and allows for more certainty and predictability by eliminating “planning by negotiation.” This new benefit will roll together DCs and will have a cap based on property value by municipality.

Red Tape Reductions:To reduce red tape and help streamline approvals, among other actions:

  • Direction will be provided on how municipalities can use the Ontario Heritage Actwhile allowing for compatible changes and creating consistent appeals.
  • The role of Conservation Authorities is to be reviewed to make sure that they go back to their core mandate, which will reduce overlap in approvals and reduce costs by streamlining roles.
  • The Environmental Assessment Actwill be amended to exempt low-risk actions and remove duplications.

“It just takes too long to build new housing in the GTA,” says Wilkes. “This restricts supply and negatively impacts affordability. When you then layer on a disproportionate share of the cost for new infrastructure, parks, and municipal services to new homes, you now have the recipe for what we are currently experiencing.”

The complex regulatory environment, government fees, taxes and charges add as much as 25 per cent to the cost of an average new home in the region, BILD says.

The roposed LPAT changes will have a beneficial impact on supply, BILD says. Currently, there are as many as 1,000 cases, representing almost 100,000 housing units across Ontario waiting for consideration at the LPAT.

The overall focus on reducing red tape and speeding approvals through modifications to the Provincial Policy Statement, The Ontario Heritage Act, The Environmental Assessment Act and many others will enable the industry to unlock housing supply.

“We need more of all types of housing across the GTA – homes for purchase, for rent and social housing,” says Wilkes. “We look forward to working with all levels of government to address housing supply and affordability as the consultation on the proposed changes continues.”

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GTA 2019

7 factors that will affect GTA housing in 2019 – and 5 reasons to consider buying NOW

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7 factors that will affect GTA housing in 2019 – and 5 reasons to consider buying NOW

GTA 2019

By Wayne Karl

GTA homebuyers, we have some good news and some bad news.

First, the good news: You live in one of the most desirable areas and housing markets in Canada – maybe even the world.

The bad news? That affordability challenge we’re all facing.

“The affordability issue is not going away,” PricewaterhouseCoopers says plainly, in its Emerging Trends in Real Estate 2019 report.

Why? See point number one.

“Potential homebuyers will need to alter their expectations and possibly delay entry into homeownership,” Dana Senagama, manager, market analysis for Canada Mortgage and Housing Corp. (CMHC), told Homes Publishing.

Not exactly the most hopeful outlook for those – especially first-timers – looking to buy a home in and around the GTA.

But it’s not all bad. Let’s look at what’s going on in the market, and what would-be buyers can do to help their cause.

1 Return to price growth

Following the introduction of the Ontario Fair Housing Plan in April 2017, recent interest rate hikes and other changes, sales and prices in the GTA have seen some moderation.

But the slowing will be short-lived, Senagama says. Key economic fundamentals such as population and employment growth will continue to drive housing market demand, but the supply of new homes is not being addressed. The result? A return to price growth.

“CMHC is working on data gaps like supply with many industry stakeholders and partners,” she says. “Currently, we are participating in a working group with the province of Ontario to find solutions and best practices.”

PwC says the region is feeling the effects of demographic shifts. Millennials have begun to compete with Baby Boomers for real estate, and over the next decade, almost 700,000 first-time buyers will target the GTA or Hamilton markets, according to a May 2018 report from the Ontario Real Estate Association.

2 Risk of overvaluation

Senagama cautions, however, that the Toronto market is still showing signs of overvaluation.

“This happens when house price growth is surpassing the population and income growth. So, despite some of the moderation you’re seeing, we’re still calling for a high degree of vulnerability in Toronto in the foreseeable future.”

3 Inelastic supply

The GTA housing market is characterized by inelastic supply. “Supply is slow to respond to any change in price, and we’re seeing that time and time again,” she says.

Recent research from CMHC and Altus Group, in fact, shows that of the lowrise new home projects that were started in 2016 and 2017, it took 15 years for those developments to go from the initial land purchase to product hitting the market.

Supply response
Source: CMHC

 

“We have a problem, in terms of supply.”

With very limited new home supply hitting the market, once buyers get used to temporary shocks to the system brought on by policy issues and rising interest rates, they return to buying homes, which in turn drives up prices.

4 Condo demand

With lowrise home prices enjoying spectacular growth in recent years, there was a compositional shift in demand toward less expensive product – namely condos – particular among first-time buyers.

But now, with price growth even in this category – with average condo prices rising 8.4 per cent year-over-year to $552,269 in the third quarter this year – and pre-construction units in the $700,000 range…

“These are not price points for first-time buyers,” Senagama says, “so we’re still looking at very high prices across the GTA.”

5 Mortgage rates

The Bank of Canada has already raised its influential overnight rate target three times since July 2017, to 1.5 per cent from 0.75 per cent. Experts expect at least one more increase this year, possibly as early as the next rate announcement on Oct. 24.

A more moderate pace of rate increases could impact the market, but not significantly since the majority of mortgage holders are on fixed-rate mortgages, CMHC research shows.

6 Rental market

Any discussion about affordability needs to include the rental market, Senagama says. “Much like the ownership segment, supply is a huge constraint in the Toronto rental market.”

Rental

With the average vacancy rate in the GTA 1.1 per cent, and 0.7 per cent for condo rentals, rental rate increases are picking up steam. “Because we have a supply problem. And because we don’t have enough supply of the purpose-built rental units, the gap has been filled in by the condo market.”

About 33 per cent of all condos in Toronto are being rented out by investors, according to CMHC. This results in renters paying a much higher premium to rent a condo versus a purpose-built apartment – on average 50 per cent more, for a two-bedroom unit.

“We talk about affordability, and this raises so many other concerns, especially in a market that is supply-strapped,” Senagama says.

7 Catch 22

investors are buying into the condo market to rent out their units, taking advantage of the tight rental market. But first-time buyers – who typically aren’t equity-rich or wealthy – have to compete for available condo product, which again drives up prices.

 

 

5 REASONS TO BUY A HOME NOW (OR AS SOON AS YOU CAN)

1 Affordability

More supply of new homes is a big part of the solution. But despite ongoing lobbying from the housing industry, and apparent increasing awareness of new elected municipal leaders, this problem won’t be solved overnight. It will take time. Lots of it. In the meantime, as PricewaterhouseCoopers says: The affordability issue is not going away. It might even get worse before it gets better.

2 Market moderation waning

With little relief on the supply side expected, price growth will continue to be strong, even if somewhat muted compared to the double-digit increases seen over the last few years. In short, the longer buyers wait, the more it could cost you.

3 Interest rates

Experts expect at least one more increase this year, possibly as early as the next rate announcement on Oct. 24. To protect yourself against a more moderate pace of rate increases, consider a fixed-rate mortgage product.

4 Pent-up demand

Buyers believe prices are going to increase, but not to the same degree we’ve seen in recent years. This will lead to pent-up demand, which when released over the next year, will contribute to increasing buying activity and rising prices. So, if you’re able to buy before then, you could beat the rush.

5 Rental market

If you’re a Millennial planning to move out of home and into the rental market, consider this: Toronto is the most expensive Canadian rental market, with average rates for one-bedroom units at slightly more than $1,900 per month (up 2.8 per cent from August to September); $2,374 for two-bedrooms (up 7.1 per cent). Try saving up for a down payment at those rates; maybe staying at home a little longer isn’t so bad after all.

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

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Toronto vote

Municipal candidates aware of housing needs – TREB poll

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Municipal candidates aware of housing needs – TREB poll

Toronto vote

With municipal elections only days away, the Toronto Real Estate Board (TREB) has released recommendations on what newly elected councillors, mayors, and regional chairs across the Greater Toronto Area (GTA) can do to ensure housing affordability and choice for homebuyers and renters.

TREB also released the results of responses received from more than 200 municipal election candidates from across the GTA. Candidates were asked to respond to a TREB survey asking for their views on key housing issues that are the subject of TREB’s recommendations.

Both the policy briefs and candidate survey responses can be viewed at UnlockMyHousingOptions.com

“A recent poll conducted by Ipsos Public Affairs showed that housing affordability was a top-of-mind issue for voters in this election,” says TREB President Garry Bhaura. “Housing affordability is a priority for voters, and they want it to be a priority for the incoming municipal councils. Based on the candidate survey responses that TREB received, it appears that housing affordability is also a priority for many candidates.”

SURVEY HIGHLIGHTS:

  • 95 per cent of responding candidates in Toronto, and 86 per cent of responding GTA candidates, indicated that, if elected, they would advocate for updating municipal zoning by-laws and policies to encourage more medium density housing.
  • 85 per cent of responding Toronto candidates indicated that they would be willing to consider reforms to the Toronto Land Transfer Tax to adjust it for inflation; 84 per cent of responding GTA candidates indicated that they would, if elected, oppose proposals for any new municipal land transfer tax.
  • 85 per cent of responding Toronto candidates, and 79 per cent of responding GTA candidates, indicated that they would support efforts to reduce planning approval times and red tape to facilitate new housing supply.
  • 97 per cent of responding Toronto candidates, and 96 per cent of responding GTA candidates, indicated that they would, if elected, advocate for funding from senior levels of government for infrastructure investments.

MISSING MIDDLE

TREB has also released three new policy briefs on “missing middle” housing supply, housing-related municipal red tape, and infrastructure needs for housing supply, in addition to a brief issued earlier in the campaign on the impact of municipal land transfer taxes. TREB’s recommendations call for newly elected municipal councils to support the creation of much needed housing supply and options.

TREB is calling on councils to:

  • Review municipal zoning by-laws and consider changes to allow for more mid-density development such as townhomes.
  • Resist community opposition and work with neighbourhoods  by improving communication strategies to articulate the ability of mid-density developments to be seamlessly integrated into existing neighbourhoods.
  • Prevent any new municipal land transfer taxes in the rest of the GTA.
  • Reform the Toronto Land Transfer Tax to adjust the first-time home buyer rebate, and the threshold price at which the higher tax rate kicks in, for inflation, so both keep pace with the current average home price in Toronto now sitting at around $800,000.
  • Conduct reviews of municipal planning approval processes for new housing applications with a goal of streamlining and shortening the process.
  • Recognize the importance of infrastructure as it relates to housing supply and affordability, and move ahead with critical projects and investments such as regional transit as a key part of strategies targeted to addressing housing needs.

 

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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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INDUSTRY EXPERT: Toronto's Future Now

INDUSTRY EXPERT: Toronto’s Future Now

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INDUSTRY EXPERT: Toronto’s Future Now

by David Wilkes

Facilitating renovations and custom-building in the GTA to increase housing supply

I am always glad when I notice renovation and custom-home building in our neighbourhoods. It not only benefits homeowners but when secondary suites are added, they can play a small yet important part in increasing our region’s housing supply. This is just another reason we should try to make the renovation and custom-home building process as easy as possible for homeowners.

Some people create secondary suites in their homes by finishing their basement or converting their attic. These spaces can then be used to house a family member—perhaps an elderly parent—or a tenant. Other homeowners in the GTA have a garage or another structure in their backyard that they can convert to a secondary unit.

Photography: Bigstock.com
Photography: Bigstock.com

OPTIMIZING URBAN SPACE

Sometimes, homeowners even have space on their lot for a second, small dwelling. These homes typically face onto public lanes—Toronto, for instance, has more than 2,400—and draw their water and electricity from the main house. Laneway housing, as this type of home is known, has many proponents in the GTA, our industry among them, because it has the potential to provide muchneeded affordable rental housing in established neighbourhoods.

LANEWAY HOUSING UPDATE

While a basement or attic renovation requires only a simple building permit, until recently, homeowners who wanted to build laneway housing had to go through a complicated approvals process. This is the reason Toronto has only a few laneway homes. Things are changing though. Recently, Toronto City Council voted in favour of allowing laneway houses.

Whether you are planning to refurbish a basement or add a laneway house, a RenoMark renovator is your best ally in navigating the process. This renovation professional will share with you his or her knowledge of the rules and regulations that apply in your case and the permits you need. He or she can even submit the application to the municipality on your behalf. Find a RenoMark renovator at renomark.ca.

PERMIT & APPROVAL PROCESS

Unfortunately, even with the help of a RenoMark renovator, the permit and approval process can take months for basic home additions and more than a year for larger renovations and custom homes. That is why BILD created a Standard of Service Excellence that municipalities can adopt. Under the Standard, municipalities would commit to reasonable turnaround times and specific timeframes, provide an online permitting portal for transparency and accountability, and improve service by building inspectors.

By adopting a Standard of Service Excellence for the permit and approval process, municipalities would not only make life easier for homeowners who are undertaking a renovation or building a custom home, they would also help speed up the building of the secondary units that help increase housing supply in our region.

David Wilkes is president and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA.

For the latest industry news and new home data, follow BILD on Twitter, Facebook, BILD’s official blog, and bildgta.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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BILD

Housing prices continue to grow as supply trends downwards: BILD

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Housing prices continue to grow as supply trends downwards: BILD

Lack of new housing supply continues to escalate prices and average prices for both new single-family detached houses and highrise condos in the GTA reached unprecedented levels in November, the Building Industry and Land Development Association (BILD) announced.

The number of new homes available for purchase in the GTA continues to be around all-time lows. At the end of November, there were 15,184 new homes in builders’ inventories, only 84 more than in August, which reported the lowest level on record. Housing supply has plummeted over the past decade. In November 2006 there were 31,150 new homes available for sale according to Altus Group, BILD’s official source for new home market intelligence.

Only 13 per cent of the available inventory at the end of last month was lowrise homes with just 2,036 units and of those 789 were detached single-family houses. Available highrise supply was also down in November, falling to 13,148 units.

“The low inventory story is not only about lowrise – highrise inventories have been on a downward path over the past three years,” said Patricia Arsenault, executive vice president of research consulting services at Altus Data Solutions. “Total available inventory in November was the lowest November level we have seen since we first started to track this data in 2000.”

Low levels of inventory resulted in record-setting prices for detached homes and highrise condominiums in November. The average price of new condos in the GTA reached $493,137, a 10 per cent increase from a year ago. Condo unit size continued to increase with the average in November at 820 square feet.

Meanwhile, the average price of new detached homes in the GTA hit $1,230,961 in November, up 27 per cent from last year. Since the beginning of the year, new detached single-family homes in the GTA have gone up by more than $258,000.

Overall, average prices for new lowrise homes, which includes detached and semi-detached houses as well as townhomes, increased 20 per cent over the past 12 months. In November, a buyer needed $977,890 to buy the average lowrise home.

“The industry is building to government policy and building far fewer lowrise homes, especially detached single-family homes, but demand has not dropped with the supply so prices continue to increase,” said Michelle Noble, vice president of communications, marketing and media relations at BILD.

So far this year there were 8,843 detached homes sold in the GTA, which is 16 per cent fewer than in 2015. At this time 10 years ago, 12,273 detached homes were sold across the region.

Overall there have been 43,651 new homes sold in 2016 with highrise accounting for 60 per cent, or 26,299 homes, and lowrise totalling 17,352 homes.

bildgta.ca

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