Toronto is now on the list of some of the most unaffordable cities in the world and prices are rising all over the Greater Golden Horseshoe as a result. We need to fix this problem, and there are ways we can do that. The spin from the Ontario government and sprawl developers is that the problem is a lack of land. But that’s not why prices are high.
Experts say these are the nine real reasons why house prices are still so high:
- RBC says the main culprit is low interest rates
- Baby boomers and their parents are living longer and staying in their single family houses That means these houses are not available to younger people
- Real estate is a compelling choice compared to most other investments
- Money laundering is an issue and housing attracts dirty money ($20 billion in the GTA), from foreign and domestic buyers.
- Toronto and the GGH is a dynamic region that attracts thousands of people each year, driving up demand
- Most of our housing stock is single family homes which is the most expensive housing option. And housing developers control supply by only allowing a limited number of houses onto the market
- Rental housing costs stay high due to demand and the high cost of new detached houses which are the main alternative
- Many of the urban condo projects over the last 20 years include small bachelor and single bedroom units. This limits the supply of family sized condos and urban housing choices
- New rental apartments are not being built because of the short term profits to be made from building and selling condos
Want more information how to increase the supply of affordable housing in the Greater Golden Horseshoe? Read this blog.
