solution to the GTA housing problem

Distinguished economist Benjamin Tal says that rentals “must be part of the solution” to the GTA housing problem

Report Summary:
  • The GTA is not a normally functioning market due to a history of legislation failure, as well as a severe lack of land;
  • House prices, while always on the rise in the GTA, have followed a “predictable path” until 2016, when the average-home price increase spiked by 17.3% and is currently at over 20%;
  • Unexpectedly, condo prices followed suit to almost parity, rising by 16% in the fourth quarter of 2016;
  • Contrary to the perception that there are “too many condos”, condo sales increased by a record 34%, while the supply was down by 6%;
  • The demand for housing in the GTA is not only strong but “stronger than perceived” due to “undercounting of the number of non-permanent residents”;
  • Government intervention to prevent the house prices to grow at this rate, such as foreign tax policy and new mortgage rules do not make a significant difference in an atypical market such as the GTA.

 

Report Conclusion:
  • An increase of supply of rental units is desperately needed in the GTA for a “real and lasting change”;
  • The GTA’s rental market has “never been hotter” with average rent rising by a record of almost 12%;
  • The new wave of renters (young families) will need “stability of long-term renting”;
  • For builders in the 416 area, the gap between the profitability of condos and profitability of purpose-build is very narrow; on surplus land, it makes even more sense to favour purpose-built;
  • Incentives from the government on new rental projects will make the difference between an “affordable and an unaffordable GTA housing market”: expediting the approval process for purpose-built projects, allowing higher intensification rates and cutting the HST will ultimately encourage builders to complete purpose-built projects before a full-blown affordability crisis.

New Apartment Construction in the GTA from 2002-2017.
*Dip in 2017 is due to unit numbers yet to be announced.*

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Toronto rental rates fastest growing in Canada

Toronto rental rates fastest growing in Canada

Toronto’s rental housing market is downright scary right now, and there are few signs that affordability will improve in the near future. After significant price gains over the last two months, March rental rates show the highest percentage increase so far this year.

According to data complied by apartment listings website Padmapper, the median cost to rent both a one and two bedroom apartment in Toronto has increased by 4.9 percent in March. That compares with 4.5 percent (one bedroom) and 4.6 percent (two bedroom) last month

In January, the rate of increase was 3.3 and 3.7 percent, respectively. To start the year, the median price of a one bedroom in Toronto was $1,550 and a two bedroom came in at $1,970. Now Padmapper has those prices at $1,700 and $2,160, respectively.

Do you see a troubling trend? Rents were already way up last year, and the numbers are only climbing.

Despite these increases, Toronto has yet to become the most expensive rental market in Canada. That title still goes to Vancouver, though its rate of increase flat lined over the last month. The median price of a one and two bedroom stayed at $1,900 and $3,130.

Other cities also experienced major price increases for March. Kingston’s one bedroom apartment stock jumped 5.3 percent to $990 but its two bedrooms were a bit cooler at 3.6 percent growth for a median of $1,180.

 

growth study in GTA prices

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Antilia, The Most Extravagant House In The World

While a 27-storey, two billion-dollar house for six people in the most poverty-stricken area of India might seem a tad bit extravagant to most, the richest man in India and sixth richest in the world, Mukesh Ambani, seems to have missed the memo. And that’s precisely why there is a towering skyscraper that reaches 550 feet with over 400,000 square feet of interior space against the Mumbai skyline.

 

 

The opulent residence that completed a four-year construction process in early 2010, was designed by American based architects on 48,000 square feet of land in downtown South Mumbai.

In its initial days, and even after its completion, the ostentatious display horrified Indian residents. Considering more than half live on $2 a day, and the building overlooks an overcrowded slum, it’s not hard to see why.

 

 

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