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Understanding the Dynamics of Toronto’s Condo Market: Key Insights and Future Predictions – August 20, 2024

The Toronto condo market is currently experiencing a complex dynamic characterized by rising listings and stagnant sales. Many prospective buyers are left wondering: why are condo prices not falling despite a record number of listings? In this article, we will explore the various factors contributing to this phenomenon, analyze current market statistics, and offer insights into what might happen in the coming months.

Current Market Statistics: An Overview

To understand the current state of the condo market in Toronto, it is crucial to look at the latest statistics. These numbers provide insights into sales, listings, and overall market health.

Sales and Listings Trends

In the Greater Toronto Area (GTA), the number of sales has decreased by approximately 4% year-over-year, totaling just over 3,300 sales. This figure indicates a sluggish market, consistent with the previous couple of years. Meanwhile, new listings have surged by 14%, reaching about 9,100. As a result, active listings have skyrocketed by 41%, totaling nearly 13,000 units available for sale.

When we examine the month of inventory, which is a key metric for gauging market balance, we find that there are about 3.9 months of inventory available. A higher number of months of inventory typically indicates a cooling market, and this aligns with the current trends we are observing.

Condo Market Specifics

Focusing specifically on the condo market, we see that sales have dipped by 7%, amounting to nearly 1,900 transactions. The number of new condo listings has increased by 21%, reaching about 6,500. Notably, active listings have hit a record high of 10,688 units, up an astounding 57% compared to previous years.

The month of inventory for condos is approximately 5.8 months, suggesting a more sluggish market in downtown Toronto compared to suburban areas. Average condo prices have also declined by 3% year-over-year, currently sitting at $736,850.

 

Understanding the Psychological Factors at Play

One of the most intriguing aspects of the current condo market is the psychology influencing sellers’ pricing strategies. Despite the increasing inventory and declining sales, many sellers remain resistant to lowering their prices.

The Stickiness of Prices

Prices in real estate markets often exhibit a “stickiness” on the way down. This phenomenon occurs because sellers are often reluctant to accept a loss, especially when they are comparing current prices to peak prices rather than their original purchase prices. This psychological barrier contributes to the stability in condo prices, even in the face of declining sales and rising inventory.

The Rental Market: A Parallel Trend

The rental market in Toronto is also experiencing notable changes, which have implications for the condo market. Understanding these trends can provide further insights into the dynamics at play.

Increasing Rental Activity

Last month, the number of new leases increased by 29%, totaling just under 8,000 new leases. This uptick can be attributed to a growing inventory of rental units available in the market. Active rental listings have nearly doubled compared to last year, reaching 7,851 units.

Average rents have slightly decreased by 5% year-over-year, now averaging around $2,800. However, they tend to rise seasonally during peak times, such as the summer months when students are searching for accommodations.

Key Factors Influencing Price Predictions

As we look to the future, several key factors will influence whether condo prices will fall or remain stable.

Inventory Levels and Sales Dynamics

If inventory continues to build while sales remain sluggish, we may see downward pressure on prices. Investors who are unable to hold onto their properties might be forced to sell at lower prices, which could further drive prices down.

Conversely, if many investors opt to rent out their units instead of selling, this could alleviate some pressure on prices. The decision of individual owners to retain their properties and rent them out could stabilize the market in the short term.

Market Sentiment and Interest Rates

Another significant factor is market sentiment regarding interest rates. If forecasts suggest that interest rates will decrease, buyers may be more inclined to enter the market, potentially increasing demand. However, this optimism must be tempered with the understanding of broader economic conditions influencing these forecasts.

Conclusion: Keeping an Eye on Market Developments

The Toronto condo market is at a crossroads, influenced by a combination of psychological factors, market dynamics, and economic conditions. As listings rise and sales remain low, the question of whether prices will fall remains open-ended.

It is essential for both buyers and sellers to stay informed about these developments. Monitoring inventory levels, understanding the motivations behind seller decisions, and keeping an eye on rental market trends will be crucial in making informed real estate decisions in the coming months.

In conclusion, while the current market may seem daunting, it also presents opportunities for those who are willing to navigate its complexities. Whether you are a buyer, seller, or investor, understanding these dynamics will be key to making smart real estate choices in Toronto.

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Not everyone is thrilled with the design plans for Toronto’s new island neighbourhood

A new community coming to Toronto’s waterfront as part of the eco-engineering marvel that is the Port Lands Flood Protection Project has made some particularly magnificent strides in the last few weeks, but just as the land is being primed for the new precinct, people are chiming in with a few pieces of constructive criticism.

The renaturalized, human-forged Don River valley extension has finally been filled with water that runs below the city’s shiny new bridges. The next step in the process will involve connecting the old and new rivers by removing dams placed during the construction of the waterbed.

While we’re still very far away from the advent of the condo buildings, offices, retail spaces, roads and more that will comprise the new island community, online critiques have been popping up as workers make such rapid visible progress on the site.

One voice has been noted local architecture critic Alex Bozikovic, who has spawned some further discussion about the forthcoming district’s design on X this week.

 

Among Bozikovic’s (and others’) concerns are the project’s lack of housing density, with some 9,000 homes included in the latest 2024 Demonstration Plan — a figure he thinks is perhaps “arbitrarily too low” for the 33-hectare space.

There is also some question of other aspects of the neighbourhood’s urban planning, such as the scale of the proposed streets in a time when the city is increasingly trying to de-prioritize cars, and also the dominating feel of the towers, as currently designed.

It seems that given the island presented the City with the opportunity to come up with something completely new — or at least inspired by much more successful design than we often see in Toronto — some feel a little let down with what is in the works.

As Bozikovic wrote in his posts on the topic at the end of March, he and others are “very curious to learn more about how this was designed.”

Per the blurb on the $1.25 billion sustainable project from Waterfront Toronto, planners are hoping to position Villiers as “a new waterfront community that embraces its distinct industrial functions and the spectacular new parks, public spaces and ecological richness that will result from the naturalization of the mouth of the Don River.”

“Surrounded by water on all sides, the Villiers Island precinct will introduce a vitality to the area that honours the distinctive culture associated with waterfront districts and vibrant working ports.”

Given that yet another public meeting regarding density in particular was just held on March 26, with recommendations going to City Council later in the spring, residents have yet to see the final version of what Villiers will be — which will include a new name.

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Canada’s Inflation Rate Rises To 2.9% In March

This morning, Statistics Canada (StatCan) published its anticipated March inflation report. The Consumer Price Index (CPI) rose 2.9% on a year-over-year basis in March, up from a 2.8% gain in February.

Economists had predicted that the Consumer Price Index (CPI) would tick up in March thanks, in part, to an increase in gasoline prices. Gasoline prices indeed contributed the most to the acceleration, as prices at the pump rose faster in March compared with February. Excluding gasoline, the all-items CPI slowed to a 2.8% year-over-year increase, down from a 2.9% gain in February.

Last month, the annual pace of inflation cooled to 2.8% in February compared with 2.9% in January. For March, it was expected by analysts that this figure would hit 3.1%.

Shelter prices continued to apply upward pressure in March, with the mortgage interest cost and rent indexes contributing the most to the year-over-year gain in the all-items CPI, according to StatCan. Prices for services (+4.5%) continued to rise in March compared with February (+4.2%), driven by air transportation and rent, outpacing price growth for goods (+1.1%) which slowed compared with February (+1.2%) on a yearly basis.

On a monthly basis, the CPI rose 0.6% in March. Month-over-month price growth was broad-based. All eyes of those looking to enter the housing market were likely on the report, as it and its April figures will be highly influential in whether the central bank opts to lower its policy rate. The big question is whether the slight spike is enough for Canada’s central bank to change its direction on the interest rate front. Last week, the Bank of Canada held its key interest rate at 5%, but hinted that an interest rate cut could be on the horizon for June.

“Yes, it’s within the realm of possibilities,” Macklem said at a press conference on Wednesday, when asked by a reporter about the likelihood that the Bank will lower its policy rate at its next meeting, slated for June 5. “I think we’ve been pretty clear, we are encouraged by what we’ve seen since January. If you look at our indicators, they’re not all progressing at the same speed, but they’ve all been moving in the right direction: inflation has come down, core inflation has come down, the more timely three month measures of core inflation suggests there’s downward momentum.”

The report comes in advance of the release of the federal government’s budget later this afternoon. Front and centre in the budget is Canada’s housing crisis, with Trudeau’s government fresh from a slew of housing announcements last week that involved everything from 30-year mortgages for some first-time homebuyers, to a promise to fix the growing encampment problem.

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Canada cancels first-time home buyer incentive

Canada’s housing agency says it is ending the first-time homebuyer incentive program, which many had criticized as unhelpful.

According to the Canadian Press, Canada Mortgage and Housing Corp. said in a notice on its website that the deadline for new or updated submissions to the program is midnight Eastern time on March 21.

The plan was meant to help first-time buyers by having the government take on partial ownership of their property.

The government offered a loan of five or 10 per cent of the purchase price that would go toward a larger down payment, with the intended goal of reducing monthly payments.

Under the program, homeowners have to repay the incentive after 25 years or when the property is sold, with the amount owing adjusted to reflect how the value of the property has changed.

The program was hampered in part by eligibility issues including limits to household income and the size of a mortgage the buyer could take on.

Total borrower income couldn’t be higher than $120,000, or $150,000 in Toronto, Vancouver or Victoria, while the total borrowing could be no more than four times the qualifying income, or 4.5 times in the three pricey cities.

The program wasn’t useful since it didn’t help buyers put together a minimum down payment, and the restrictions meant some borrowers qualified for smaller amounts than they otherwise would, said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.

The government-ownership component also added complications to a convoluted program that was poorly thought out, he said.

“It was literally like they sat in a room by themselves, without anyone who understood the industry, and just made up a bunch of stuff that made no sense,” said Laird.

The government already helps first-time buyers by backing uninsured mortgages, but if they want to do more they could allow amortizations to be stretch out over 30 years, he said.

“It lowers the monthly cost … and there’s no complicated co-ownership agreement.”

The first-time homebuyer incentive was launched in 2019 with a $1.25-billion commitment. As of the end of 2022, CMHC had committed $329 million representing about 18,500 applications.

CMHC did not immediately provide a comment.

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Bidding wars threaten Toronto housing market as home sales jump by 37%

Greater Toronto home sales soared 37% in January / February compared with the same month a year ago as lower borrowing costs associated with fixed-rate mortgages lured some buyers back to the market. Bidding wars are also storming back in some choice Toronto GTA locations.

Last month’s 4,223 home sales also marked a 22.9 per cent month-over-month increase from December, according to data released Tuesday by the Toronto Regional Real Estate Board.

It said the market is tighter than it was a year ago as new listings increased by 6.1 per cent, but didn’t keep pace with demand.

Sales were up across all housing categories in the region on an annual basis, led by townhouses at 54.5 per cent and semi-detached homes at 42.9 per cent. The number of condominiums that changed hands was 41 per cent higher than a year ago, as detached home sales rose 27 per cent.

Meanwhile, the average home price dropped one per cent from the same time last year to $1,026,703, which was also a 5.4 per cent decrease from the final month of 2023.

TRREB president Jennifer Pearce called it a positive start to the year.

“The Bank of Canada expects the rate of inflation to recede as we move through the year. This would support lower interest rates which would bolster homebuyers’ confidence to move back into the market,” she said in a news release.

“First-time buyers currently facing high average rents would benefit from lower mortgage rates, making the move to homeownership more affordable.”

The board’s chief market analyst Jason Mercer added that once the central bank starts cutting its key rate from the current five per cent, likely in the second half of 2024, more competition between buyers amid constrained supply will push prices higher.

“Prices will continue to go up,” said Jessica Hammell, a broker who focuses on downtown and midtown Toronto properties for Real Broker Ontario.

Amid rising demand, she said “it’s not a time to sit and wait and see what happens” for those considering a home purchase.

“It definitely behoves people to start at least making plans, like evaluating their circumstances, getting that pre-approval to see where they stand and taking calculated action,” she said.

The Bank of Canada has expressed caution about the potential effect on the housing market should it move too quickly to lower its policy rate.

In a summary of governing council deliberations that led to December’s decision to hold the rate steady, members said easing financial conditions prematurely could prompt a rebound for Canada’s housing market, further fuelling inflationary pressures.

But Hammell said many prospective buyers aren’t waiting for better borrowing conditions to make their move.

“Even the promise of rates coming down in the near future has definitely helped people feel more comfortable taking action,” she said.

“I think buyers are savvy now. They know that when things start trending down with rates, prices are going to come back up. They’re seeing this opportunity and they’re seizing it.”

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We could reach 2% inflation by this summer: National Bank

Could Canada’s headline inflation rate reach the neutral target of 2% by this summer, a full year sooner than the Bank of Canada’s own forecasts?
National Bank of Canada thinks so.

In a new report, economist Taylor Schleich argues that there’s actually a “clear path” to 2% inflation by the middle of this year.

“To get 2% inflation, one doesn’t need to assume inflation decelerates at all from the recent run-rate,” he writes. “Indeed, simply plugging in the average monthly increase from the past six months (+0.2%) brings you right to target in Q3.”

He notes that that’s even with the “problematic” shelter inflation, which continues to run more than 6% above year-ago levels and is the leading contributor to headline inflation right now.

This is also based on National Bank’s expectation that GDP growth will turn negative in both the second and third quarters of 2024.

In January, Statistics Canada reported that headline CPI inflation fell more than expected to an annualized 2.9% from 3.4% in December.

Should the now-negative output gap—which is the difference between what an economy actually produces and what it would produce in an ideal world—further slow inflation or if we return to pre-pandemic dynamics, which is a monthly average of +0.15% from 2010 to 2019, Schleich says inflation could return to target even sooner.

This scenario is drastically different from the Bank of Canada’s current forecast released in its January Monetary Policy Report. The Bank maintains that headline inflation won’t return to its desired 2% target until the middle of 2025, and has been adamant that it wants to see “assurance” that inflation is trending back towards its target before considering interest rate cuts.

“The moral of this story is, despite the BoC’s repeated warnings that inflation victory won’t come until next year, there’s a path to 2% that’s shorter and clearer than some may appreciate,” Schleich adds.

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What do you do when you are stuck with a pre-construction home or condo?

A common problem today for would-be buyers of pre-construction homes or condominiums is when the property values have dropped, interest rates have jumped to make financing impossible, and reselling at a loss in a depressed market is not realistic.

William’s predicament is not uncommon. Back in September, 2021, he signed an agreement to buy a Toronto condo for $900,000, and gave the developer two deposit cheques totalling $90,000. Another $45,000 was due on occupancy last month.

Little did he imagine that in preparation for final closing this summer, his bank would appraise the completed unit at just under $700,000, leaving him to come up with more than $200,000 he doesn’t have in order to close this summer.

Nor did he anticipate that when he took possession, the occupancy fees would escalate to a staggering $5,800 a month, largely due to the higher interest rates set by the Bank of Canada.

William’s $90,000 deposit was all the money he had in the world. The builder refused to allow him out of the deal or return any part of the deposit, but did allow a short extension of the occupancy closing to see if he could raise the $45,000 due at that time.

Based on conversations I have had with my clients and colleagues in recent weeks, William’s position with his “underwater” deal is not unusual.

People like William are turning to their real estate lawyers for help. The first thing we have to advise them are the consequences of breaching the contract and failing to close. I tell them about cases such as that of Treasure Hill Homes v. Yang.

In 2016, Fuxiang Yang and Ziye Zhao agreed to buy a house from the builder for $2,214,813.

Six weeks before closing the buyers advised the builder that they were unable to close the transaction. The builder ultimately resold the house for $1,500,000 and sued for its losses of $616,601 and forfeiture of the deposit.

At a court hearing in October, 2021, the builder was awarded its entire damages against the purchasers.

The law is that buyers who breach a purchase contract are liable for all damages suffered by the builder on a resale, minus the original deposit which is forfeited.

Buyers faced with similar problems might consider liquidating other assets, or arranging private financing until they can close and resell. Some builders have been able to arrange institutional or vendor-take-back financing for buyers who are at risk of defaulting.

Real estate lawyers may be able to help their clients calculate their potential losses if they raise money, close and resell, or if they breach the contract and get sued by the builder for its losses.

Sadly, where a rescue is not in the cards, some buyers may have to consider filing for bankruptcy so they can make a fresh start on life.

It’s a scary time for many buyers. They can only hope that by mid-year, the market will improve and interest rates will ease.

 

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2024 is the investment year on whatever assets which has been affected by interest rates and are in sale!!

64 countries (plus the European Union) are expected to hold national elections in 2024, representing a combined population of about 49% of the people in the world

Learning from the history on election years quantitative easing was a common political solution !!!

Below list are representing the expected national elections in 2024 in the world:

Number of Countries Holding Elections by Continent

  • Africa: 20 countries
  • Americas: 14 countries
  • Asia: 18 countries
  • Europe: 12 countries

Population Representation in 2024 Elections

  • Asia: 25%
  • Africa: 15%
  • Americas: 7%
  • Europe: 2%

List of Most Populous Countries Holding Elections in 2024

  1. India: Lok Sabha (House of the People) elections are expected to be held in April – May 2024 1.
  2. United States: The United States presidential election is scheduled to be held on Tuesday, November 5, 2024 1.
  3. Brazil: Presidential and legislative elections are expected to be held in October 2024 1.
  4. Indonesia: Presidential and legislative elections are expected to be held in April 2024 1.
  5. Russia: Presidential and legislative elections are expected to be held in March 2024 1.
  6. Mexico: Presidential and legislative elections are expected to be held in July 2024 1.
  7. Pakistan: Legislative elections are expected to be held in February 2024 1.

Please note that this is not an exhaustive list of all the countries holding elections in 2024, but rather a list of some of the most populous countries holding elections in that year. The dates mentioned above are subject to change and may vary depending on the country’s political situation. For more information, you can refer to the Wikipedia page on the list of elections in 2024.These graphs and information provide an overview of the significant national elections expected in 2024, representing a substantial portion of the global population.

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Ranked: Canada’s Housing Markets, by Price Growth in 2023

Ranked: Canada’s Housing Markets By Price Growth in 2023

Between 2010 and 2022, real Canadian housing prices jumped 90%, making Canada one of the most expensive and unaffordable housing markets in the world.

We visualize the average price of housing across Canada’s provinces and territories in 2023 (excluding Nunavut), based on data from the Canada Real Estate Association (CREA).

The data visualized above is a mix of averages provided by provincial organizations to CREA as well as benchmarks found using CREA’s MLS® HPI tool. Data from the MLS tool is labeled with an asterisk in the below table, and the methodology behind how it is calculated can be found here.

All prices in this article are in Canadian dollars (CAD). The chart above adds in the U.S. dollar (USD) equivalent based on a 0.74 CAD/USD conversion rate.

One Canadian Housing Market is Not Slowing Down
The average price of a house in the Northwest Territories (NWT) comfortably crossed half a million dollars in September, 2023, a 40% jump from $385,500 a year earlier.

However a house in NWT still costs below the country-wide average of $640,000.

Here’s how the rest of Canada’s housing markets did between September 2022–23, ranked by percentage price growth.

The price boom in NWT, which picked up pace during the pandemic, is due to a lack of supply and new construction. The territory has also seen greater wildfire risk over the years—in 2023, nearly 70% of the population faced displacement due to encroaching fires. Over the long, hot summer, wildfires wiped out towns and forced the entire city of Yellowknife (population 20,000) to evacuate for three weeks.

The federal government has promised the construction of 50 new affordable homes to mitigate some of the destruction.

While no other housing market has mirrored what’s happening in NWT, every one of them, except the Yukon has seen some sort of price growth.

For British Columbia, and Ontario—the country’s most expensive regions—prices are closer to $1 million than not. Their biggest cities, Vancouver and Toronto routinely feature in annual reports on real estate bubbles around the world.

However, both regions have recently seen a housing supply surge which may cause prices to drop as much as 10% in 2024—still leaving them 15% higher than before the pandemic.

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Activity in downtown Toronto at highest level in years, but experts say there’s still a long way to go

Downtown Toronto appears to finally be bouncing back nearly four years after the onset of the pandemic, but it could still be a while before the city returns to its former glory, experts say.

According to research by the University of Toronto’s School of Cities, which has been monitoring cellphone activity in major North American cities since 2020, foot traffic in downtown Toronto between March to mid-June of 2023 was at 70 per cent of pre-pandemic levels.

That’s the highest number of unique visitors seen in Toronto’s downtown core since COVID-19 closed businesses around the globe and changed the nature of in-office work.

“A year-and-a-half ago, we had a range from 30 to 130 per cent. So a vast range of rates. And now cities are all converging to between 50 and 100 per cent, and most of them are around the median of 75,” Karen Chapple, director of the School of Cities, told CTV News Toronto in an interview.

Toronto ranks 45th among the 66 cities featured the latest batch of data. In its last “Downtown Recovery” report, Toronto ranked 55th as cellphone pings remained at about 47 per cent of pre-pandemic levels between December 2022 to February 2023.

By comparison, Mississauga is in 8th place at 91 per cent, Ottawa is in 21st at 82 per cent, and London is in 30th place at 79 per cent.

Chapple has said Toronto’s sluggish “downtown recovery” over the last several years is due, at least in part, to the length and extent of rolling public health lockdowns.

And while an increase in downtown activity is welcomed, she suspects it will take some time for the city to return to 100 per cent.

“There’s so many factors. We’re also thinking about slowing construction rates. And we’ve had a lot of layoffs lately. We’re in a bit of a rough patch in the economy. So I think we’re going to be under 100 per cent for probably the next two or three years. And then I think by that time, we should be able to kind of start to crawl out,” she said.

A crucial element, Chapple said, in getting Toronto back to full strength will be reimagining the offices left vacant by the city’s massive technology and financial services workforce, which has managed to stay productive and profitable with remote and hybrid work.

In a separate analysis conducted by Environics Analytics for CTV News Toronto, data shows that the number of unique workers and daily workers in the downtown core was 34 and 39 per cent of pre-pandemic levels, respectively, from Jan. 1 to June 15 of 2023.

Since the beginning of the pandemic, only half of all office leases in downtown Toronto have come up for renewal, according to Chapple. She said when the leases of the remaining offices come up, the city will have a “chance to turnover.”

“[City council] is studying it, I think, and I think you will see, in the next six months or so, some changes to the policy, and some new ideas come on the table,” she said. “The city’s working on its overall economic strategy. It’s working on the downtown piece, but it can’t just be the city. We have to have the downtown landlords play a role and want to solve the problem.”

In a statement to CTV News Toronto, the City of Toronto said it is “actively planning and delivering” city building and growth strategies in the long and short-term that “aim to bring people to the city to live, visit, do business, work and enjoy Toronto.”

“Through it’s work, the city is deeply committed to driving community vibrancy and diversity, supporting neighbourhood building, unlocking green space, inspiring public art and culture, creating gathering spaces, driving new business development to support more job creation and economic investment, welcoming tourists, major events and conferences, leading major public events and programming for residents, and encouraging more people to walk, bike or ride transit across Toronto, including the downtown core,” the statement read.

 

TTC RIDERSHIP REMAINS BELOW PRE-PANDEMIC LEVELS
The latest data from the TTC shows that ridership, like downtown Toronto foot traffic, remains below levels seen before the pandemic.

According to a November report, the network transported 41.8 million riders between Aug. 27 and Sept. 30, which represents 78 per cent of the TTC’s pre-pandemic traffic.

The report noted that despite weather events at the beginning of the year which hampered ridership, the number of customers increased afterward and has remained “slightly above budget.”

The TTC has struggled to get people to come back to the transit at levels seen before 2020, with the number of so-called “commuter” riders who use the system every weekday at 57 per cent of pre-pandemic levels. That effort has become even more challenging amid a recent fare increase, a number of high-profile safety incidents, and an aging network overall.

“One of the things that we worry about in terms of mobility here is the fact that not only is this an underbuilt system, underfunded and under resourced, it’s getting older, right and we haven’t put the modernization dollars into it over the decades,” Giles Gherson, President and CEO of the Toronto Region Board of Trade, said in an interview with CTV News Toronto.

Toronto’s transit woes below ground are also being felt on the street and have contributed to what Gherson described as a “congestion crisis.” The problem has become so bad in fact that businesses are struggling to hold meetings and conventions in the city because it’s garnered a bad mobility “reputation.”

“Massive congestion is killing our livability…It’s hurting investment, it’ hurting tourism, and it’s making people really frustrated. But really what it’s hurting is the willingness of employees come downtown to work.”

Gherson said the new funding deal between the city and the province, which features $758 million for 55 new subway trains on Line 2 contingent on matching funds from the federal government, is a “significant win” for the city and hopes Ottawa will come to the table.

TORONTO TOURISM STILL DOWN 10-15 PER CENT
Kathy Motton is the senior manager of corporate communications at Destination Toronto and said tourism in the city is still about 10 to 15 per cent away from where it was pre-pandemic.

“We’ve got a couple of key markets that have not yet returned,” she said in an interview with CTV News Toronto. “China, for example, hasn’t returned, and China actually brought around 300,000 visitors a year to Toronto before 2019.”

Like Gherson, Motton explained that business events have yet to return in full force and the city is only seeing about 60 per cent of the traffic related to those conventions that it used to.

But the city is still welcoming tourists in the millions annually, and the missing 10 to 15 per cent appears to be shrinking.

According to Destination Toronto’s market performance dashboard, there were 8.18 million visitors to the city in 2023 – more than two million more arrivals than in 2022 and triple what it saw in 2021.

In terms of dollars and cents, the data shows visitors spent $6.34 billion during their trips this year.

While it’s unclear when Toronto tourism will return to 100 per cent, Motton believes that when that does happen, so to will the “vibrancy” she says has been missing in the city.

“The visitors are a part of what makes our city so great. As Torontonians, we could see that during the pandemic, when we were missing those visitors and there was less of the international markets coming in,” she said. “When we fully return, we’re going to feel the full return of the vibrancy and I think we already see that at 85 per cent.”

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Closing the Gap: Understanding Canada’s Housing Crisis 2024

The housing market in Canada is currently grappling with a significant and unprecedented challenge – a widening gap between population growth and housing completions. This growing disparity has far-reaching implications, impacting economic, physical, and mental well-being, and posing a threat to Canada’s status as a prosperous and upwardly mobile society.

Understanding the Housing Disparity
Recent research, including a study by the Fraser Institute, has revealed the severity of the housing shortage in Canada. The study compared annual population growth with housing completions between 1972 and 2022, uncovering that the gap between the number of homes needed and the number being built has never been wider. For instance, from 2018 to 2022, Canada’s population grew by an average of 553,568 people annually, while only 205,762 new homes were built each year on average during the same period. This imbalance has led to soaring housing costs and affordability challenges for many Canadians, with the gap between the number of homes produced and the number needed at a 50-year high

Impact of Population Growth
The surge in population, largely driven by immigration, has significantly outpaced the rate of housing completions, further exacerbating the housing shortage. The study revealed that the influx of new residents has led to a surge in housing demand, making it increasingly difficult for the housing market to keep pace with the growing population. This imbalance has led to a situation where housing completions have equaled less than 40% of population growth over the last five years, underscoring the magnitude of the housing shortage

Policy Implications and Solutions
The widening gap between housing demand and supply has prompted calls for urgent policy interventions to address the housing crisis. The Fraser Institute’s research emphasizes that unless meaningful efforts are made to close this gap, affordable housing will remain out of reach for an ever-greater share of the population, with detrimental effects on living standards across the country. The study also highlights the need to streamline regulations and increase the supply of housing to bridge the widening gap between demand and supply. Easing zoning laws and facilitating new construction are cited as potential solutions to alleviate the acute shortage of housing in Canada

In conclusion, Canada’s growing housing gap poses a significant threat to the country’s economic and social well-being. The disparity between population growth and housing completions has reached unprecedented levels, leading to soaring housing costs and affordability challenges. Urgent policy measures and increased housing supply are essential to bridge this gap and ensure that affordable housing remains accessible to the population.

sources:
The Star
Yahoo
Fraser Institute
Fraser Institute
Fraser Institute
Story’s
Yahoo Finance
Real Economy
True North

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Understanding Landlord Rights in Ontario: Evictions, Court Claims, and Protecting Your Property

Introduction:

In Ontario, Canada, landlords have specific rights and obligations under the Residential Tenancies Act, 2006, and other relevant legislations. One of the main rights landlords have is the right to evict tenants under specific circumstances, which include the need for demolition or renovation, personal use of the property, illegal activities, nuisance, damage to premises, and disturbance to the quiet enjoyment of the landlord and other tenants. Landlords may apply to the Landlord and tenant board for relief. In addition, landlords have the right to proceed in Superior Court for matters involving more than $35,000 and can make claims for unpaid rent.

Eviction for Demolition or Renovation:

Landlords in Ontario have the right to evict tenants if they plan to demolish the property or perform extensive renovations that require the building to be vacant. However, landlords must provide proper notice and, in some cases, compensation to the tenants. If the landlord intends to renovate and then re-rent the property, the tenant has the right of first refusal to return to the renovated unit at the same rent.

Eviction for Personal Use

Landlords also have the right to evict tenants if they or their immediate family members wish to move into the property.
In this case, proper notice and compensation may be required, and the landlord or their family must occupy the property for at least one year.

Eviction for Illegal Activities:

Landlords can evict tenants who are involved in illegal activities on the property. This includes illegal drug production, trafficking, or any other illegal activities that are prohibited by law.

Eviction for Nuisance and Disturbance:

Landlords have the right to evict tenants who cause a nuisance or disturb the quiet enjoyment of the landlord or other tenants. This can include excessive noise, harassment, or any other actions that interfere with the rights of others.

Eviction for Damage to Premises:

Landlords can evict tenants who cause significant damage to the property. The landlord must prove that the damage was caused by the tenant or their guests, and that it is not the result of normal wear and tear.

Claims for Unpaid Rent:

Landlords have the right to make claims for unpaid rent. If a tenant fails to pay rent on time, the landlord can provide a notice to end the tenancy and, if the tenant does not pay within the specified time, can proceed with the eviction process.

Right to Proceed in Superior Court:

In Ontario, landlords have the right to proceed to the Landlord and Tenant Board for relief and to the Superior Court for matters involving more than $35,000. This can include claims for extensive property damage, unpaid rent, or other significant breaches of the lease agreement.

Conclusion:

In conclusion, landlords in Ontario have specific rights and obligations under the Residential Tenancies Act, 2006, and other relevant legislations. These rights include applications to Landlord & Tenant Board to evict tenants under specific circumstances, such as the need for demolition or renovation, personal use of the property, illegal activities, nuisance, damage to premises, and disturbance to the quiet enjoyment of the landlord and other tenants. In addition, landlords have the right to proceed in Superior Court for matters involving more than $35,000 and can make claims for unpaid rent. It is important for landlords to understand their rights and obligations and to consult with legal counsel to ensure compliance with the law.

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Blackstone bets on Canadian immigration to usher in growth

With highly educated immigrants set to grow Canada’s population, one of the world’s largest asset management firms is looking to invest heavily in the country.

Blackstone, the world’s largest alternative asset management company which oversees US$1 trillion in assets, is opening up an office in Canada as it commits to growing its presence and investments in the country.

Jonathan Gray, president and chief operating officer of Blackstone, told BNN Bloomberg that his company has “a lot of enthusiasm” about Canada’s economy – and he sees the country’s growing population as its largest asset for future growth and productivity.

“We think the resource that (Canada) is most rich in is human talent,” Gray said in a television interview on Wednesday.

“The fact that the population in Canada is growing at 2.7 per cent, five times the rate of the U.S., it’s very bullish. Many of those folks are quite educated as well.”

Blackstone is looking to grow its investments in Canada within several industries that include housing, logistics, infrastructure and clean energy.

“You’ll see us on the real estate front do more in the student housing, which is an area Canada is really strong in, because so many people want to get a Canadian education,” he noted.

Data centres will be another area Blackstone intends to focus to facilitate the advancement of artificial intelligence, Gray added.

“When you think about what’s coming in AI, data centres are really the manifestation of that,” he added.

HOUSING PUSH

As Blackstone eyes more student housing, Gray spoke about the Canadian housing market’s strength at large.

Despite extraordinary high prices, he expects that overwhelming demand for housing in Canada combined with limited housing supply will continue to support the sector – particularly in areas where concentrated numbers of immigrants are expected to land.

“I think housing long-term has got some support because of this supply-demand imbalance,” Gray said.

Watch the full interview with Gray on BNN Bloomberg, Wednesday afternoon at 1:10 p.m. EDT.

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Here’s the REAL reason why income inequality keeps rising in Canada and how will it impact us all

What is the money supply (M2) of Canada in 2023? How will it impact you and your wealth?

Canada M2 Money Supply is at a current level of 2.410T, down from 2.412T last month
Referring to Collecting the helicopter money model (monetary tightening by raising the interest rate).

Central Banks are Creating Paper money from the thin air….. = Paper money (Fiat Money) = toilet paper
Owning Assets : GOLD , SILVER, Real Estate is more reliable than fiat money

What was Canada’s Money Supply M2 in Jun 2023?
Canada Money Supply M2 was reported at 1,821.669 USD bn in Jun 2023 See the table below for more data.

How does M2 money supply affect the economy?
It provides insights into the potential inflationary pressures, economic activity, and the overall health of financial markets. An increase in M2 money supply can stimulate economic growth and investment by making more funds available for lending and spending.May 16, 2023

What happens when M2 increases?
As a result, M2 offers a more comprehensive overview of inflation levels because if the M2 monetary supply is increased, inflation could rise. Equally, if M2 supply is restricted by central banks, inflation could fall.

Here’s the REAL reason why income inequality keeps rising in Canada

The gap between income and house prices has been steadily growing since the 80s.

And it’s not slowing down.

Because the real reason house prices are going up while wages are down?

is a little something called ‘M2 supply’ (aka the amount of ‘new’ money added to the economy).

Compares GTA house prices to M2 supply:

Almost perfect correlation between the amount of new money added…and the average house price in the GTA.

  • How does this all impact you as a hard-working Canadian?
  • How does it impact your kids who might want to purchase their own home one day?
  • Where will house prices go up from here? And will “higher for longer” interest rates really make a difference?
  • According to this chart, M2 supply (i..e ‘new’ money entering the economy) in Canada is going up again as of the last quarter!

Despite the higher rates:

This means home prices could also stay high…if not go up again.

  1. What’s going on behind the scenes?
  2. What does the Bank of Canada have planned for rates, and where might they go over the next 12-18 months?
  3. Where will M2 be headed and what factors might force the Bank of Canada’s hand into pumping new liquidity into the economy again?

 

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What You Should Know About the Ontario & GTA Housing Market

GTA New Condo Prices by Month

Average Greater Toronto Area New Condo Asking Prices

  • Average GTA new condominium apartment asking prices per-square-foot are up 63% since 2018, but down 8% annually to just under $1,500 psf in August.
  • The average end-selling price was $1.33 million for a new condo in the GTA in August, down 21% annually.
  • We are yet to see a lot of high-rise developers lower pricing in 2023, instead choosing to offer incentives to move product. With that said, the most successful launches are coming to market at 2021 price levels, pulling the overall average price down.

New Condo Price Growth by Municipality & Year

Year-Over-Year Change in New Condo Pricing by City

  • Six municipalities experienced annual new condo price growth per-square-foot of over 25% in 2022, with Kitchener and Waterloo topping that list at 45% and 44%, respectively. Previously viewed as tertiary markets, the KW region is now valued more like a GTA suburb.
  • In the City of Toronto, new condo prices rose 5% annually in 2021 and 13% annually in 2022, but have fallen 2% year-to-date this year (ending August 2023).
  • The municipalities with the highest price growth in 2023 are primarily markets with limited launch activity in 2022, and based on fairly small sample sizes.

Historical Investor Returns – Select East Toronto Projects

Launch Pricing versus Resale Pricing

Bullpen Consulting Pulled Data on the Average Price of New Condos Launched in East Toronto and Scarborough, and Compared them Against Average Resale Prices from September 2022 to August 2023.

  • There are five high-rise projects analyzed in Scarborough in the chart above. These projects have seen pricing increase by just under 80% on average from launch, an average annual return of 11%.
  • There were 16 mid-rise projects reviewed, with data showing that these projects have increased in value by 73% on average or 9% annually.

Average Rent at GTA Buildings Completed since 2014

Quarterly Average Rent and Rent Per-Square-Foot

  • When considering condominium and rental apartments completed over the last 10 years in the GTA, the average asking rent was $3,184 in Q3-2023 (July and August only) based on a sample of listings data, compared to $3,085 per month in the fourth quarter of last year (+3%).
  • On a per-square-foot basis, these condo and rental projects that are less than 10 years old are asking approximately $4.43 psf in rent in the third quarter, compared to $4.20 psf in Q4-2022 (+5%).
  • In should be mentioned that the average unit size is falling (719 sf vs 735 sf), contributing to the increase in per-foot rent levels. The median unit size in Q4-2022 was 702 sf, compared to the median unit size in Q3-2023 of 669 sf.

Average Rent at Recently Completed PBR Buildings in the GTA

Quarterly Average Rent Per-Square-Foot for Select “Newer” Purpose-Built Rental Apartments

  • These 20 buildings (high-activity projects completed over the last 10 years) were asking about $4.16 psf on average for rent in the second quarter of 2023, versus $4.37 psf in Q3-2023.
  • One of the newest developments to start their lease-up program is Maple House at Canary Landing, with asking rents of approximately $4.75 psf.

Condo Launch Prices versus 2023 Rent Levels – New Completions

Condo Launch Prices Per-Square-Foot versus Average Rent Per-Square-Foot (2023 Completed/Registered Condos)

  • The average asking rent per-square-foot at these 2023-completed condominium apartments in southwestern Ontario is $3.89 psf versus an average launch price of $805 psf. The rent represents 0.48% of the launch price (rent-to-price ratio).
  • Projects where rent is the highest versus the launch price is 0.73% at the Gaslight District Condos in Cambridge, and 71% at Rodeo Drive Condos in the Shoppes at Don Mills development in North York. There is “rent value” for lower-priced markets like Cambridge, while the rent value created at Rodeo Drive is due the the 7+ years from launch to occupancy.

 

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Selling Your Occupied Rental Property? Here’s What You Need to Know

Are you considering selling your occupied rental property?

Whether you’re a seasoned landlord or an accidental investor, parting ways with a rental property that currently has tenants can be a complex process.

First and foremost, understanding the legal rights and obligations of both landlords and tenants is crucial. You must navigate the intricacies of existing lease agreements, local rental laws, and tenant rights to ensure compliance and protect everyone involved.

Effectively communicating with your tenants is also key. Open and transparent dialogue is essential to manage expectations, address concerns, and establish a cooperative environment throughout the sales process. Maintaining a positive tenant-landlord relationship can lead to a more favorable outcome for all parties involved.

There are a few effective strategies for marketing an occupied rental property, including showcasing its potential, coordinating property showings, and balancing the needs of prospective buyers with the comfort and privacy of your tenants.

By delving into these essential considerations, you’ll gain valuable insights into selling an occupied rental property and be better equipped to navigate the challenges that may arise along the way.

Can I Sell My Occupied Rental Property in Canada?
Selling an occupied rental property in Canada is indeed possible, but the regulations and procedures can vary depending on the province where the property is located. While it’s essential to familiarize yourself with the specific laws of your province, there are some general guidelines to keep in mind.

Firstly, tenants in Canada are afforded certain rights and protections, including the right to peaceful enjoyment of their rented space. Landlords must adhere to these rights and follow the proper legal procedures when selling a rental property with tenants in place.

In most provinces, landlords are typically required to provide written notice to tenants about the intent to sell. The notice period can vary, but it is usually a minimum of 24 hours and should include details about property showings and access.

Moreover, landlords must respect tenants’ privacy and ensure that property showings are conducted in a reasonable manner. This means coordinating with tenants to schedule showings at mutually convenient times.

It is advisable to consult with local real estate professionals and legal experts who specialize in landlord-tenant law to ensure compliance with specific provincial regulations.

Regulations on Rental Property Sales
The federal government doesn’t place any direct regulations on selling tenanted properties in Canada. However, there are provincial regulations in place that are important to understand if you wish to sell your occupied property.

In Ontario, for example, when a landlord decides to sell their property, they are required to provide the tenant with the appropriate form, available for printing from the governing board. This form outlines the reason for the tenant’s departure from the property.

The provincial regulations are fairly consistent across all provinces. Tenants are generally entitled to notice before the landlord may do showings of the property, and they can decline to allow showings for times when they are unavailable to attend.

If a dispute arises between the tenant and the landlord regarding the sale of the property before the end of a lease agreement, then the resolution will be handled by the respective tenancy board for that province.

Understanding the provincial regulations that govern the sale of rental properties is an important step in effectively selling your occupied rental property. For more information, visit your local province’s official website.

How Much Notice Does a Landlord Have to Give When Selling a Rental Property in Canada?
The amount of notice that a landlord must give when selling a rental property in Canada depends on the specific province and the circumstances of the sale. Generally, landlords are required to provide written notice to tenants regarding the sale of the property.

In many provinces, such as Ontario and British Columbia, if the landlord wants the tenant to vacate the property due to personal use or for a family member to move in, they must provide a notice period of at least 60 days before the termination of the tenancy. This notice should be given prior to the first day of the final rental period.

In cases where the new purchaser does not intend to become the new landlord and the tenant is required to move out after the sale, the landlord typically needs to provide a notice period of 30 days after the sale has been completed.

It is important for landlords to familiarize themselves with the specific regulations in their province to ensure compliance with the appropriate notice periods and procedures when selling a rental property. Consulting with local real estate professionals and legal experts can provide further guidance on the specific requirements in each province.

Tips For Selling a Tenant-Occupied Rental Property
Selling a tenant-occupied rental property comes with its own set of unique challenges. However, with the right approach and strategies, you can navigate the process successfully.

Respecting the tenants’ rights and privacy is essential. Be mindful of their schedules and comfort when scheduling property showings or inspections. Open and effective communication with your tenants is crucial. Keep them informed about the selling process and address any concerns promptly.

Understanding your legal options is also of vital importance. Familiarize yourself with local landlord-tenant laws, lease agreements, and regulations specific to your jurisdiction. This knowledge will help you navigate the process within legal boundaries and protect the rights of both parties.

By incorporating these tips into your selling strategy, you can foster a cooperative environment, maintain positive tenant relations, and increase the chances of a successful sale.

Offer Incentives
Offering incentives can be a powerful tool when selling a tenant-occupied rental property. Providing incentives not only encourages tenants to cooperate during the sales process but also helps maintain the property’s market appeal.

Consider options such as reduced rent for a specified period, covering moving expenses, or offering financial compensation for their cooperation. Incentives demonstrate goodwill and can alleviate any concerns or inconveniences the tenants may have.

This also increases the likelihood of them keeping the property presentable during showings, which can attract potential buyers. By offering incentives, you create a win-win situation where tenants feel valued, and you increase the chances of a smooth and successful sale.

Be Respectful
Maintaining respect for your tenants throughout the process of selling a tenant-occupied rental property is paramount. Treat your tenants with courtesy, empathy, and professionalism.

Respect their privacy by giving ample notice for property showings and inspections, and strive to accommodate their schedules whenever possible. Listen to their concerns and address any issues promptly and fairly.

Clearly explain the reasons for the sale, the timeline, and any changes that may affect them. Listen attentively to their concerns and address them promptly. Keep them informed about property showings, inspections, and any necessary access to the unit.

By fostering a cooperative and understanding environment through communication, you can minimize misunderstandings, build trust, and maintain a positive tenant-landlord relationship. This will not only facilitate a smoother sales process but also contribute to the overall satisfaction of all parties involved.

Understand Your Legal Options
Having a clear understanding of your legal options is essential when selling a tenant-occupied rental property. Familiarize yourself with the specific landlord-tenant laws and regulations in your jurisdiction.

Be aware of your rights and obligations as a landlord, as well as those of your tenants. Consult with legal professionals or real estate experts experienced in rental property sales to ensure compliance with the law.

Understanding your legal options empowers you to navigate the sales process within the boundaries of the law, protecting both your interests and those of your tenants. This knowledge will help you make informed decisions, handle any legal challenges that may arise, and ensure a smooth and legally compliant sale.

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Toronto Condo Segment Tightens in Q2, With Rents ‘Well Outpacing’ Inflation

Toronto’s condo market continued to tighten in the second quarter of 2023, according to new data from the Toronto Regional Real Estate Board (TRREB), with sales up “strongly” year over year and new listings once again failing to keep pace.

More specifically, TRREB reports that there were 6,844 total condominium apartment sales in the quarter, up over 20% year over year. In contrast, new condo listings were down by more than 13%.

“This divergence between condo sales and listings also meant that active listings at the end of Q2 2023 were down by 8% compared to the end of Q2 2022,” notes the report.

TRREB President Paul Baron attributes the rise in sales to “an extremely competitive rental market.” Still, he says, “average condo selling prices remain below last year’s levels, which has helped from an affordability perspective.”

Condos in the GTA sold for an average of $737,868 in Q2, and that price was down 4.2% compared to the second quarter of 2022. Zeroing in on the City of Toronto — which accounted for two-thirds of total condo sales — the average selling price was $769,616, down 3.3% from Q2 2022.

“As sales increase relative to the number of listings available, expect condo prices to trend upward in the months ahead,” cautions Baron.

“Encouraging” Growth In Condo Rental Listings
A separate TRREB report, also released Thursday, shows that average condo apartment rents continued to “well outpace” the rate of inflation in the second quarter of the year, which is a continuation of a two-year-long trend.

At $2,532, the average one-bedroom condo apartment rent grew 11.6% from Q2 2022. In a similar fashion, the average rent for a two-bedroom climbed 9.2% to $3,264.

Over the same Q2 2022 to Q2 2023 period, the number of condominium apartment rentals reported through TRREB’s MLS® System, at 13,935, saw a 5.4% uptick, while the number of condo apartments listed for rent grew by a greater annual rate of 15.4%.

“Despite seeing an increase in the number of units listed for rent, competition between renters remained very strong. This competition underpinned higher average rents,” explains the report.

Still, TRREB Chief Market Analyst Jason Mercer says the growth in new condo rental listings was “encouraging to see.”

“If this is sustained over the longer term, the pace of rent growth will slow,” Mercer continues. “However, it will take some time to make up for the rental housing deficit that has built up over the last number of years. It will be key to see more purpose-built rental units come online to augment investor-owned condominium apartments which have accounted for most of the new rental stock in the GTA over the past decade.”

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Five Compelling Reasons to Choose Real Estate Investment Over Stocks

The investment world often buzzes with the debate of real estate versus stocks. While both avenues have unique advantages, real estate investment stands out with distinct benefits that often outshine the stock market, especially in times of high inflation. Here are some reasons why your clients should be looking to put their money into real estate:

1. Tangibility:

Unlike stocks, real estate is a physical asset. It’s something you can see, touch, and use. This tangibility provides a sense of security and offers various practical uses, from personal residence to rental income generation.

2. Predictable Cash Flow:

Real estate, especially rental properties, often ensures a steady income stream. This income is generally more stable and predictable than stock dividends, making real estate a reliable investment.

3. Tax Advantages:

The tax code is often more favorable to real estate investors than stock investors. From deductions for mortgage interest and property taxes to depreciation benefits, real estate investment can provide significant tax advantages.

4. Inflation Hedge:
Real estate serves as an excellent protection against inflation. As living costs increase, so does the value of your property and the rent you can charge. This ensures that your investment keeps pace with or even outpaces inflation.

5. Investor Control:
Real estate investment gives you more control over your investment. Unlike stocks, where your returns are dictated by company performance and market trends, you can improve, repurpose, or sell your real estate based on your decisions, influencing your investment’s performance.

While stocks can play a role in a diversified investment portfolio, the tangible nature, predictable cash flow, tax benefits, inflation protection, and control offered by real estate make it an appealing and wise investment choice for investors and your clients!

 

Source: Canadian Real Estate Wealth

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Underused Ontario schools could be sold by Ford government for housing in new education bill

The Ford government tabled new legislation that will give itself the power to convert underutilized schools in Ontario into affordable housing or sell off the properties on the open market, in a major overhaul of education policies.

The new bill, called the Better Schools and Student Outcomes Act, includes sweeping new measures aimed at standardizing the education system to align with “provincial priorities” — which will be set by education minister Stephen Lecce — and to give parents greater say over their children’s education.

Elected school board trustees will also be subject to training and some new rules.

In what could prove to be a controversial decision, however, the new legislation would give the Ford government the ability to repurpose unused school board lands to build affordable housing, as the province grapples with a self-imposed goal of building 1.5 million homes by 2031.

Currently, school boards that declare a property as surplus are required to offer it up to other public-sector bodies such as other school boards, colleges and universities, municipalities and the Ontario government.

The law would place the province at the front of the line, giving itself the first right of refusal, along with the power to determine the final outcome, while limiting its usage.

 

If the property is not needed by another school board, the government said, it would be taken over by the Ministry of Infrastructure and could be used for either long-term care or affordable housing. If the province declines its option on the land, the government said, it would be sold in the open market at “fair market value.”

Speaking to reporters on Monday, Lecce outlined an example of how he wants the policy to work.

Take a Catholic school board that has a school that has stood empty for years, he said. Nearby, there could be a public board that needs to build a new school and currently has to buy land on the market, competing with housing developers and other interests.

“That is ludicrous,” Lecce said.

Under the proposed rules, the minister suggested the Catholic board would offer its school to its public counterpart, which would have first refusal to pay “fair market” value for the building.

If the school board refused, the province would then be able to take it on. It could be used for priorities including long-term care or affordable housing.

After that, if no need is identified, it could be sold on the open market.

 

The government said, however, that it is not lifting the moratorium on closing schools — which was first brought into effect in 2017 by the former Liberal government as it faced opposition over hundreds of school closures due to low enrollment.

Lecce said he wanted to “challenge” school boards to “think outside the box” with their buildings, land and potential joint use schools that could incorporate non-profits like the YMCA could be involved in.

“One taxpayer paid for this — let’s maximize it,” Lecce said.

The Ontario NDP said the bill was “smoke and mirrors” and failed to address the pressing needs of students.

Ontario NDP education critic Chandra Pasma said the Ford government was “trying to shift blame” to school boards, schools and teachers.

She said she believed the Ford government was working to privatize parts of the education system.

“Underfund, underfund, underfund, and when the system reaches a moment of crisis, suddenly the solution is privation,” she said.

The government’s bill touches on huge portions of the schools, teaching and governance. It was teased by the government as a plan to “refocus” Ontario’s education system.

Parts of the proposed legislation are focused on creating more transparency, the government said.

The priorities laid out by the Ford government will be the responsibility of Ontario’s 72 school district school boards. Under the changes, they will be required to engage parents and to publicly share their progress through action plans.

The education minister said existing powers could be used to compel school boards to comply and that the Ford government would use them “if we must.”

Trustees, directly elected to run school boards at the same time as local councillors, will also face new expectations. Standardized training will be set out if the bill passes, while an integrity commissioner will also be introduced.

The province repeatedly highlighted changes for trustees were about bringing more standardized governance and discipline approaches.

Lecce was education minister when the province stepped in to take control of the Peel District School Board after allegations of anti-Black racism and discrimination.

After stepping in, trustees in Peel were sidelined from their roles until recently, with a provincial supervisor taking control.

Lecce said he “doesn’t want to step in any further” on school board governance, suggesting the changes could limit the need for future takeovers similar to the Peel District School Board.

The legislation could also usher in changes to the oversight and rules that govern teachers and educators.

The province is proposing a plan to work with the Ontario College of Teachers and the College of Early Childhood Educators to change some rules governing staff. It includes a plan to create a new disciplinary process, including for staff convicted of sexual assault.

Some new staff will also be brought into the system, the province said.

Specific staffing to increase the province’s attempts to de-stream some classes are also part of the plan, Lecce said.

On Sunday, Lecce announced changes that would involve the hiring of 1,000 new staff to boost math and literacy rates across the province.

Lecce said the new math plan was worth $71 million for the 2023-24 academic year, with $109 million set aside to boost literacy rates in the province. The changes include funds for a number of new staff, new lessons and additional tests.

“We take this seriously,” Lecce said, unveiling the plan. “If we don’t intervene at the front end, and course correct these challenges for these young kids, it can lead to long-term impacts.”

A total of 1,000 new educators will be hired through the program, with 300 focusing on math and 700 on literacy. With around 4,800 schools across the province, the boost will not come close to impacting every classroom in Ontario with new staff.

Answering questions from reporters after the announcement, Lecce said details would be given to school boards shortly. He specified that some funds would focus on the lowest-performing 20 per cent of schools in the province.

Global News reported in October that a majority of Grade 6 students were failing to meet provincial math standards.

Education Quality and Accountability Office (EQAO) data, obtained by Global News and confirmed by the Ministry of Education at the time, also showed math test scores for the 2021-2022 school year have not substantially improved since 2018 — when Premier Doug Ford took office and promised change.

The latest data said 59 per cent of Grade 3 students met the provincial mathematics standard. Just 47 per cent of Grade 6 students met the threshold, while 52 per cent of Grade 9 students were at the standard.

The test, however, was administered during unprecedented disruption in the education system due to COVID-19.

On Monday, Lecce said the grants for student needs — funding school boards — would increase by 2.7 per cent, below the rate of inflation. That increase is worth $690 million, he said.

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Permits to build new Ontario condos soar by 25% as new policies speed approvals

Building permits for multi-unit dwellings are on the rise in Ontario as the province continues to face pressure from increased demand and a critical shortage of housing.

The total value of building permits in Canada increased by 8.6 per cent to $10.7 billion in February compared to January, indicating “robust intentions” for both residential and non-residential sectors, according to a recent Statistics Canada report.

Seven provinces reported monthly increases, with notable gains in Ontario, especially for multi-dwelling units, such as condos and townhouses.

Multi-dwelling permits in Ontario sharply increased by 13.6 per cent in February compared to January, led by a variety of large value permits, or condo building construction, which jumped 25.4 per cent, the report said.

“The demand for new homes since the pandemic has skyrocketed,” said Luca Bucci, CEO of the Ontario Home Builders’ Association. “We’re seeing our members trying to provide as much supply as they can to meet demand.”

In 2022, the federal government announced a plan to welcome half a million immigrants a year by 2025, of which many newcomers are skilled workers looking to potentially buy a home or rent.

Because the GTA has limited land availability building highrise towers is a cost-effective way to produce more housing, Bucci said. “The cost to build over the last few years has increased substantially, so multi-dwelling units are the more economical option,” he added.

Yearly construction costs for residential buildings rose the most for single-detached houses, by almost 21 per cent, and townhouses by more than 20 per cent, from 2021 to 2022, according to StatsCan. And for non-residential buildings costs increased by 12.5 per cent — the highest annual increase since 1981.

That’s why building more condos is economically more attractive for developers. It’s resulting in a record 25,000 new condominium unit completions slated for 2023 with an additional 100,000 units set to be completed between 2024 and 2028, according to research firm Urbanation.

Premier Doug Ford’s government is also partly the reason for the rise in building permits due to policies like the More Homes Built Faster Act, which aims to speed up development, said Shawn Ramautor, a sales representative with Royal LePage Wolle Realty in Kitchener.

“We’re seeing a lot of these permits now because of the provincial government’s policies,” he said.

Multi-dwelling permits can also be used for turning a residential home into a duplex or triplex, or building a laneway house, which is a faster way to build more units than building a condo tower, he said.

While there has been an uptick in permits, an overall shortfall in housing still plagues the sector.`

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