Tag Archives: housing

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Lessons from Tokyo

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Lessons from Tokyo

Exploring how other cities and countries approach housing, planning and development can often provide us with insight to enable us to better meet the housing needs of the residents of the Greater Toronto Area (GTA). In early June, a Building and Land Development Association (BILD) delegation visited Tokyo and came away with quite a few impressions.

The population of the city of Tokyo is just shy of 10 million people and the population of the Greater Tokyo Area is approximately 38 million with a population density of 6,158 people per sq. km. This would be compared to Toronto’s three million and the GTA’s 6.4 million with a population density of 4,457 people per sq. km. So, while we have challenges in the GTA you can you can well imagine the magnitude of the task of housing, moving and providing places to work, shop and play for 38 million residents.

One of the first impressions of Tokyo is the transportation infrastructure. It is simply humbling to behold. Thirteen subway lines carry 8.7 million riders daily, by elevated trains and mono-rails, an integrated commuter rail system that fans out from multiple stations to all corners of the region and tripled stacked highways that snake through the heart of the city and bypass sensitive areas with tunnels. It’s enough to leave the average Ontarian with infrastructure envy. Tokyo makes it work. Their transportation system is efficient and it’s amazing.

The second impression is the typical built form for housing. There is literally housing that we refer to as missing middle in the GTA, everywhere in Tokyo. Midrise apartment buildings are the dominant housing type; the average building is about eight stories high and is spread throughout the neighbourhoods and regions of Tokyo. In the GTA, we refer to this type of housing as the “missing middle” because of the almost total absence of this type of housing that includes stacked townhomes and midrise buildings. The key feature of this type of housing is its ability to provide gentle density and increased housing supply when land is at a premium.

The third lesson is how transportation infrastructure and housing work together seamlessly. Homes are built near transit stations that form hubs around neighbourhoods. Everything is within walking distance of rapid transit of one form or another and balances the impact of the movement of people between automobiles and public transportation. While traffic congestion occurs, it’s nowhere near what we experience across the GTA on a daily basis.

Lastly, is the approach of the Japanese toward land use and built forms. At the risk of gross oversimplification, land use is flexed to requirements and when needs change so too do the buildings, torn down and rebuilt to accommodate a differing or changing need. It means there is change in housing stock, urban renewal and the concept of a “stable neighbourhood” like we have in Toronto doesn’t generally exist.

There are many lessons to take from Tokyo, and as our region’s population grows by almost 40 per cent through 2041, these lessons should be kept in mind as the GTA plans to house these people in the future.

DAVE WILKES is President and CEO of the Building Industry and Land Development Association (BILD).

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Hombuyer incentives web

Federal government releases details on homebuyer incentive programs unveiled in Budget 2019

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Federal government releases details on homebuyer incentive programs unveiled in Budget 2019

 

Hombuyer incentives web

The federal government has released the details of the first-time homebuyer incentive programs promised in March in the 2019 budget.

Beginning Sept. 2, 2019, the First-Time Home Buyer Incentive will help middle class families take their first steps towards homeownership by reducing monthly mortgage payments required for first-time homebuyers, without increasing the amount they need to save for a down payment. This program complements other measures taken in Budget 2019 to support first time homebuyers with their down payment such as increased RRSP withdrawal limit from $25,000 to $30,000 The government has allocated $1.25 billion over three years for the program. The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000.

Budget 2019 also previewed the Shared Equity Mortgage Provider Fund, a five-year, $100-million lending fund to assist providers of shared equity mortgages to help eligible Canadians achieve affordable homeownership. This will support an alternative homeownership model targeted at first-time homebuyers, help attract new providers of shared equity mortgages and encourage additional housing supply. The fund will launch on July 31, 2019, and will be administered by CMHC.

 

ALSO READ: Budget 2019 comes up short

ALSO READ: How the Liberals missed the boat on affordable housing

“Through the National Housing Strategy, more middle-class Canadians – and people working hard to join it – will find safe, accessible and affordable homes,” says Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for CMHC.“Our proposed measures will reduce the monthly mortgage for your first home by up to $286. This will mean more money in the pockets of Canadians and will help up to an estimated 100,000 families across Canada.”

First-Time Homebuyer Incentive facts

  • Canada’s First-Time Home Buyer Incentive will help qualified first-time homebuyers purchase their first home as the incentive reduces their monthly mortgage payment, without increasing the amount that they must save for a down payment. The program will launch on Sept. 2, 2019, with the first closing on Nov. 1, 2019.
  • The incentive will allow eligible first-time homebuyers who have the minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.
  • For the purchase of an existing home, an incentive amount of five per cent may be available. For the purchase of a newly constructed home, an incentive amount of five or 10 per cent may be available.
  • Doubling the incentive for purchasers of new homes encourages new housing supply.
  • No on-going repayments are required, the incentive is not interest bearing and the borrower can repay the incentive at any time without a pre-payment penalty.
  • The buyer must repay the incentive after 25 years, or if the property is sold.

 

These details confirm that the First-Time Home Buyer Incentive program will be an ownership stake in the property of qualified homebuyers, whereby the government will participate in appreciation of the property and – in the case of the property devaluing – depreciation as well.

“The key issue remains qualifying, and this program diminishes the amount that a first-time homebuyer can qualify for by about 15 to 20 per cent,” says James Laird, co-founder of Ratehub Inc. and president of CanWise Financial. “This is because the program limits the mortgage amount to four times the households’ income, whereas those not participating in the program can actually qualify for a mortgage that is 4.5 to 4.7 times their income. Household income for qualified homebuyers is also capped at $120,000.”

Those who would be attracted to the program would be Canadians who are trying to purchase at their maximum qualification, Laird adds. “However, because the program diminishes how much they can qualify for, it doesn’t serve the needs of the group it is targeted at. Canadians can get a larger loan by not participating in the program.”

 

Maximum affordability calculations

A household with $100,000 of income, putting a minimum down payment of five per cent, can currently qualify for a home valued at $479,888 with a $2,265 monthly mortgage payment.

The maximum purchase price for the same household, if they participate in the First-Time Home Buyer Incentive program, drops to $404,858 with a five-per-cent minimum down payment. The total mortgage amount would then be $400,000 (or four times their household income).

Source: Ratehub.ca 

 

Mortgage payment calculations

If the household took a five-pre-cent incentive from the government (for resales), their mortgage amount goes to $378,947, and monthly payment is now $1,810.
If the household took a 10-per-cent incentive from the government (for new homes) their mortgage amount goes to $357,894 and  monthly payment is now $1,710.

Source: Ratehub.ca 

 

 

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Development in the GTA

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Development in the GTA

Recently I completed 16 months as the President and CEO of the Building Industry and Land Development Association of the Greater Toronto Area (BILD). With 1,500 member companies, BILD GTA is amongst the largest local home building associations in Canada, and with the level of residential and commercial construction occurring across the region, the time has flown by. A consistent occurrence during this period, however, has been the number of questions I get from members of the public about development and homebuilding in the region. Residential and commercial construction is highly visible, cranes dot the skyline from Mississauga to Pickering, and so it’s only natural that residents want to know what’s happening in their communities and why change is occurring. They have questions, such as “Is all this development necessary?” (Yes, we have a housing shortage in the GTA), “Who decides what gets built where?,” “Why in my neighbourhood?,” and perennially “Why is new development so dense?”

After all, that is a primary role of an industry association, to act as conduit between media, the public and the industry. Invariably, two things come out of these interactions. The first is that we get a better understanding and appreciation of the perspectives, concerns and questions of the nearly seven million residents of the region. We use this to inform our communications, columns, and interviews, as chances are the perspectives and questions are more broadly shared. In fact, we often reflect these perspectives in our interactions with municipal and provincial governments. The second is, in our responses we are able to provide answers and information. The development and construction process is complex, lengthy and highly regulated, and more often than not these inquiries are informed by perceptions and information people have gathered through the “grapevine.” Following our interactions, BILD GTA frequently receives a follow-up thanking us for the response, indicating we provided information that was not previously known. While the interaction may not change the concerns that gave rise to the inquiry in the first place, it always leads to a more informed discussion and debate.

The reality is that while the pace of development will ebb and flow year to year with economic cycles and other factors, the long-term trajectory will be for more residential and commercial development across the region. With the population of the GTA expected to grow 40 per cent by 2041 or approximately 115,000 new residents every year, providing places for all these new residents to live, work and play will require a concerted and prolonged development effort. This will require unprecedented levels of co-ordination and partnership between all levels of government, the industry and residents, and key to that is informed discussion and debate. The past 16 months have gone by in the blink of an eye, and I look forward to continuing to work with this dynamic industry for many years to come. Please keep asking us your questions and we will continue to answer them to the best of our ability. Together, we can have constructive dialogue that ultimately helps to inform and shape our region as it assumes its rightful place as a world class city.

DAVE WILKES is President and CEO of the Building Industry and Land Development Association (BILD). Bild.ca

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GTA waterfront homes

Budget 2019 comes up short

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Budget 2019 comes up short

GTA waterfront homes

The federal government released the much-anticipated Budget 2019 this week, with homebuyers, builders and others awaiting measures to address housing issues.

And in short, it comes up, well… a little short.

First-time homebuyer help

Much of the housing focus in Budget 2019 was on addressing the needs of first-timers, namely with a new First-Time Home Buyer Incentive.

  • The Incentive would allow eligible first-time homebuyers who have the minimum down payment for an insured mortgage to apply to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corp. (CMHC).
  • About 100,000 first-time buyers would benefit from the Incentive over the next three years.
  • Since no ongoing payments would be required with the Incentive, Canadian families would have lower monthly mortgage payments. For example, if a borrower purchases a new $400,000 home with a five-per-cent down payment and a 10-per-cent CMHC shared equity mortgage ($40,000), the borrower’s total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower’s monthly mortgage costs by as much as $228 per month.
  • CMHC to offer qualified first-time homebuyers a 10-per-cent shared equity mortgage for a newly constructed home or a five-per-cent shared equity mortgage for an existing home. This larger shared equity mortgage for newly constructed homes could help encourage the home construction needed to address some of the housing supply shortages in Canada, particularly in the largest cities.
  • The First-Time Home Buyer Incentive would include eligibility criteria to ensure that the program helps those with legitimate needs, while ensuring that participants are able to afford the homes they purchase. The Incentive would be available to first-time buyers with household incomes of less than $120,000 per year.
  • Budget 2019 also proposes to increase the Home Buyers’ Plan withdrawal limit from $25,000 to $35,000, providing first-time buyers with greater access to their Registered Retirement Savings Plan savings to buy a home.

Noticeably absent from the housing measures was any adjustment to the stress test, which a number of experts say is necessary.

Industry reaction

“The Building Industry and Land Development Association (BILD) agrees with (Federal Finance Minister Bill Morneau’s) comments that there aren’t enough homes for people to buy or apartments for people to rent,” says Dave Wilkes, president and CEO.

“BILD feels the policies presented in (the) budget are a step in the right direction to help first-time homebuyers. We will continue to advocate for a review of the stress test so that first-time homebuyers can realize the dream of homeownership. Supply challenges still exist and are at the centre of the current unbalanced market, and we call for action on these by the provincial and municipal government.”

Supply challenges in the Greater Golden Horseshoe are serious, and Budget 19 fails to address them.

“This was a re-election budget that didn’t move the dial for new-home buyers in the GTA,” Richard Lyall, president of the Residential Construction Council of Ontario (RESCON) told HOMES Publishing. “While increasing RRSP borrowing for first-time homebuyers is helpful, creating The First-Time Homebuyer Incentive at a maximum of $500,000 doesn’t help many Torontonians or GTA residents.”

The Canadian Home Builders’ Association (CHBA) had been recommending a shared appreciation mortgage approach for some time, as a tool to help those who can’t get into homeownership but have the means to pay rent.

The modification to the RRSP Home Buyers’ Plan will help get Canadians into their first home, but will also act as a burden because the loan has to be repaid within 15 years, including a minimum of 1/15th per year.

“This means that, in the years following their home purchase, a homeowner has the additional financial responsibility of repaying their RRSP,” says James Laird, co-founder of Ratehub Inc. and president of CanWise Financial.

Important details of the First-Time Home Buyer Incentive program have yet to be released. For example, says Laird, it remains unclear whether the government would take an equity position in homes, or whether the assistance would act as an interest-free loan.

“This is an important distinction because if the government is taking an equity stake in a home, the amount the homeowner would have to pay back would grow as the value of the home increases,” he says.

The very launch of the program is surprising, Laird says, given that the BC Government implemented a similar measure a couple years ago, with unsuccessful results, and it was terminated in 2018. First-time home buyers found it difficult to understand and unappealing to have the government co-own their home.

Let’s do the math

Under existing qualifying criteria, including the stress test, homebuyers can qualify for a house that is 4.5 to 4.7 times their household income.

Under the new First-Time Home Buyer Incentive, however, the government has set a purchase limit of four times household income for the mortgage, plus the amount provided by the government, according to Ratehub.

By participating in this program, first-time homebuyers effectively reduce the amount they can qualify for by about 15 per cent, and their monthly mortgage payment naturally decreases in lockstep.

A household with $100,000 of income, putting a minimum down payment of five per cent, can currently qualify for a home valued at $479,888 with a $2,265.75 monthly mortgage payment.

Affordability calculations

The maximum purchase price for the same household, if they participate in the first-time homebuyer incentive, drops to $404,858.29 with a five-per-cent minimum down payment. The total mortgage amount would then be $400,000 (or four times their household income).

Mortgage payment calculations

If the household took a five-per-cent incentive from the government (for resales), their mortgage amount goes to $378,947.37, and monthly payment is now $1,810.90.

If the household took a 10-per-cent incentive, (for new homes) their mortgage amount goes to $357,894.73, and  monthly payment is now $1,710.29.

Stress test modifications

The CHBA is among the industry groups that is pushing for modifications to the existing mortgage stress test, which has served to lock out too many well-qualified Canadians due to the market and interest rate changes of the past year.

“The First-Time Home Buyer Incentive, if coupled with immediate adjustments to the stress test, has the potential for getting the housing continuum functioning again,” says CHBA CEO Kevin Lee. “It is essential that these changes come quickly, though. Current restrictions on mortgage access mean that many millennials and new Canadians are seeing homeownership slipping away, and in many markets the economic impacts are substantial.”

Looking ahead to the 2019 federal election, CHBA will be encouraging all federal parties to address housing affordability in very meaningful ways in their respective platform documents.

Budget 2019 housing measures

Budget 2019

 

 

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Arie-Buzilo_fi

GTA moving into balanced market for 2019

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GTA moving into balanced market for 2019

Although the Greater Toronto Area housing market is somewhat in balanced territory, buyers and sellers are both up against the ropes.

This year has changed so much from the last five to 10 years. Both buyers and sellers have been affected in both positive and negative ways. For me, when working with a buyer and investor client, it was always a tailored approach. However, now more than ever, we have to be extremely diligent when analyzing residential types, location and price range.

In past years, it was much more common to think about flipping real estate or short-term investments. Now? Not so much. There is a total shift to a minimum five- to 10-year hold. Since the introduction of the stress test, some real estate markets took a hit. Buyers are also now faced with additional challenges such as qualification rules and rising interest rates.

Glass half full

Although there are pros and cons in today’s market, take a glass half full approach. Just think, in the past, is was very challenging for a seller to move up to a bigger property. There were bidding wars, price increases that exceeded pay raises, and to top it all off, extremely low inventory – which meant buyers might have to settle for something they might not fully love. The trade-off was a low interest rate environment. If you were a seller, it was nice to think you could sell your property for top dollar, but the million-dollar question was where will you buy next?

Also read: GTA home prices continue to rise

Also read: GTA new home market gains further momentum in October

Also read: GTA condo sales and prices hit record levels

Today, if a seller wants to move up, they can usually find a good deal and sell their property for a fair market value. Maybe your property went down 10 to 15 per cent, however, you are also buying your next home for the same 10 to 15 per cent less. Another benefit to such market conditions is that there are more deals to be had.

Notably, there have been fewer first-time buyers out there recently. Even a larger down payment might not cut it anymore, due to higher interest rates. This is why the condo market is doing well, especially the smaller and less expensive properties, due to affordability. The new reality could well be more people renting for a longer period.

Rising rates

The qualifying rate today is slightly more than six per cent. “The recent rule change with regards to the stress test basically decreased people’s max mortgage amount by about 15 to 20 per cent,” says Michael Yosher, director of lending at Integrity Tree Solutions Inc. “The 2019 horizon looks like this trend will continue, as Bank of Canada and economists are predicting several interest rate hikes, which will further reduce the amount of mortgage a buyer will qualify for. This has really taken the wind out of first-time buyers. Family members helping out with gifted down payments and cosigning mortgage loans are the trend these days.”

According to the Toronto Real Estate Board, in October 2018 compared to last year October, average sales prices were up 3.5 per cent. Although this is good news for some sellers, most of this price growth is driven by the condominium market, which at one point lagged behind detached, semi-detached and townhouse product.

Arie Buzilo is a real estate broker with Century 21 Leading Edge Realty Inc. Brokerage, and an investor specializing in buying and selling properties in the GTA.

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EDITOR'S CHOICE: Podium Developments

New home buying opportunities abound in Oshawa and Durham Region

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New home buying opportunities abound in Oshawa and Durham Region

EDITOR'S CHOICE: Podium Developments
Ironwood Towns in North Oshawa by Podium Developments and Urban Capital

Despite the bad news this week that General Motors Canada plans to close assembly operations in Oshawa, there are some good new home buying opportunities in the city and elsewhere in Durham Region.

As various levels of government and the Unifor trade union vow to somehow keep the plant open or otherwise deal with the fallout of the decision, the housing sector in Oshawa is expected to shift into a buyers’ market.

That could mean deals for buyers in a market where home prices have already been under pressure.

 

Also read: What the GM plant closure means for Oshawa economy and housing

Also read: Oshawa housing to move into buyers’ market thanks to GM closure

 

For those looking to buy a new home, know that there are still plenty of good opportunities in Oshawa and surrounding area.

First, let’s look at recent new home buying activity in the area, courtesy of statistics from Altus Group, theofficial source for market intelligence for the Building Industry and Land Development Association (BILD).

 

Total new home sales, units

Oshawa Durham Region
Annual
2013          682       2,376
2014       1,108       3,130
2015          971       3,433
2016       1,149       5,344
2017          490       2,385
Jan-Oct
2017          483       2,262
2018            83       1,065
Source:  Altus Group

 

Naturally, the GM news is a sensitive topic to an industry such as home building, where companies dedicate years to planning and construction development projects. So don’t expect a comment any time soon from BILD, the voice of home builders in the GTA, or individual companies.

Might developers at some point offer deals – be they discounts or upgrades – in order to move an unsold inventory in a market not feeling the strongest at the moment?

It never hurts to ask.

 

A selection of new home and condo inventory

Ironwood in North Oshawa, Building Capital and Podium Developments, contemporary freehold townhomes

Harmony Creek, Conservatory Group, townhomes and detached homes

Daniels FirstHome Oshawa, townhomes

Brook Phase 2, Delpark Homes, detached homes

Fields of Harmony Phase IV, Greycrest Homes, detached homes

Harmony Gate, Sundance Homes, townhomes

Kingsview Ridge, Treasure Hill, 30-, 36- and 40-ft. singles

Park Ridge, Tribute Communities, detached homes from the low $900’s

U.C. Towns 2, Tribute Communities, townhomes form the low $600’s

Top of Townline, Woodland Homes, detached homes

For more new home buying opportunities, visit MyHomePage.ca

With files from Natalie Sicilia, New Home Research Manager & Map Editor

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Toronto Oct 25 18

GTA new home market shows some improvement in September

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GTA new home market shows some improvement in September

Toronto Oct 25 18

The GTA new home market saw increases in September over the previous month, both in terms of new project openings and new home sales, particularly sales of condominiums, according to the Building Industry and Land Development Association (BILD).

There were 1,747 new homes sold in September, according to Altus Group, BILD’s official source for new-home market intelligence – a sizeable increase over August’s 974 new home sales. Condominiums in low-, medium- and highrise buildings, stacked townhouses and loft units accounted for 1,494 new home sales in September, down 20 per cent from September 2017 and down 20 per cent from the 10-year average. Single-family home sales, with 253 detached, linked and semi-detached houses and townhouses (excluding stacked townhouses) sold, were down 28 per cent from last September and down 77 per cent from the 10-year average.

MORE PROJECT OPENINGS

With 10 condominium apartment projects and seven single-family home projects opening in September – a significant increase from August’s two project openings – remaining inventory increased to 13,952 units, comprised of 8,820 condo apartment units and 5,132 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings.

“It appears more buyers – and builders – are starting to come in from the sidelines,” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “The increase from August in both new condominium apartment sales and the number of units in new projects launched was somewhat stronger than the typical September bump alone would suggest.”

NEW HOME SUPPLY

David Wilkes, BILD president and CEO, says it’s all welcome news, but points out that consumers still lack a range of options in the new home market, due to lack of supply. The 8,820 units remaining in the condo apartment inventory represent about five months’ worth of inventory, based on the pace of sales in the past 12 months. A healthy new home market should have nine to 12 months’ worth of inventory.

This shortfall in the supply of condominiums partly accounts for the closing gap between the prices of condos and single-family homes in the GTA. In September, the benchmark price for condo apartments rose again, to $789,643, up 19.4 per cent over the last 12 months. The benchmark price for single-family homes softened again to $1.12 million, down 7.1 per cent over the last 12 months.

MUNICIPAL PARTNERS

“In the lead-up to the municipal elections, BILD succeeded in raising housing supply and affordability as major election issues,” says Wilkes. “Now we look forward to working with our municipal partners to address the barriers that stand in the way of building the housing our region needs to accommodate growth. Some straightforward steps include making sure that government charges on new homes are fair, funding and building critical infrastructure, cutting red tape and speeding up building permits and inspections.”

RELATED READING

GTA mayoral elections – who won and where they stand on housing

6 Ontario municipal elections to watch regarding housing

GTA new home market quiet in August

 

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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.

 

RELATED READING

6 Ontario municipal elections to watch regarding housing

Keesmaat’s 100,000 housing plan doomed to fail

 

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Millennials Pic

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.

RELATED STORIES

Build For Growth: Housing Affordability

THE ANALYST : Premier Ford: Seven steps to housing affordability

Housing sector calls on Queen’s Park to take immediate action to address home affordability

 

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25 Leonard Avenue

25 Leonard Avenue

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25 Leonard Avenue

Condo and homebuilders join forces to help house the homeless

(CNW) — As the weather turns cold for Toronto’s homeless population, the city’s Kensington Market neighbourhood is seeing construction begin on Toronto’s first purpose-built homes for homeless people in more than 10 years.

An excavator broke ground earlier this week in preparation for spring construction on the small strip of land beside St. Clare’s Multifaith Housing Society’s existing building at 25 Leonard Avenue, just east of Bathurst Street. This unique three-storey, 22-unit project was backed by neighbours and made possible with government and private sector support.

St. Clare’s construction partners — including home and condo builders, unions and construction associations — are stepping up to the plate in a $1 million fundraising effort.

The corporate donors are Aspen Ridge, Brown Group, Great Gulf, Greenpark, Heavy Construction Association of Toronto, Laurier Homes, Liberty Development, Lindvest, LiUNA Local 183, LiUNA Ontario Provincial District Council, Mattamy Homes, Menkes, Ontario Formwork Association, Silvercore, Tridel and Yorkwood.

Through its Open Door Program, Toronto is assisting the project with a $500,000 capital grant and waiving municipal fees and development charges.

“This was a must-do project for St. Clare’s. We are relieved to finally be through a two-year planning process and are grateful for the support of RESCON, Toronto Deputy Mayor Ana Bailão, Councillor Joe Cressy and our very supportive neighbours, said Andrea Adam, St. Clare’s operations manager.

“I applaud the hard work and vision of St. Clare’s to make this innovative project a reality,” said Bailão, chairwoman of Toronto’s affordable housing committee. “St. Clare’s is a model that works. Their partnership-based approach has created new opportunities for those seeking a safe, clean, affordable place to call home.”

“Ensuring access to safe and affordable housing for all our friends and neighbours is critical,” Cressy added. “We have a housing crisis in our city, and the new affordable homes at 25 Leonard Avenue are a crucial and welcome addition to our community.”

According to Michele McMaster, affordable housing consultant of the Canada Mortgage and Housing Corporation, “CMHC has investigated St. Clare’s operating model and found it to be replicable and scalable. We are delighted that St. Clare’s is inspiring private developers, and we hope to encourage more in the future.”

“We chose to support this project because we believe the construction industry should give back. St. Clare,s is a caring and effective organization that we respect, and we know that they have the right leadership to steer this project to success, said RESCON chairman emeritus Phil Rubinoff.

This latest intensification of the site follows the award-winning 2006 addition of 26 apartments to the roof of the building at 25 Leonard.

St. Claire’s is a charitable foundation and landlord responsible for 413 rental units in five buildings across Toronto to help get the homeless and hard-to-house into their own home to give them privacy and dignity.

RESCON is the non-profit association that represents more than 200 of Ontario’s residential builders. Its members build highrise, midrise and lowrise homes, including rental apartments and social housing.

stclares.ca



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