As we are well aware, Toronto's housing market has been a hot topic for some time now, with the rising prices and record sales.
Unfortunately, for those who can't afford to purchase a home for whatever reason, it leaves them renting within the city, or forces them to move to the suburbs with the hope that they can potentially afford something outside of Toronto.
An article released by The Star features a couple, Chris Dunne and his fiancée, both young professionals, who are hoping to get out of their rental and begin their adventure as homeowners, get married, and start a family. Again, the current market is continuing to put a dent in their dream.
Dunne and his fiancée, both 28, currently rent a condo in the area of Spadina Rd and Queens Quay. They both have steady jobs, but yet, they are struggling to find a place to call their own and begin a family.
They moved to Toronto from Newfoundland 18 months ago with a dream, to live in Toronto. With a wedding planned for next year and plans for children, they want to find a place with a patch of green to call their own.
The issue: it comes down to simple supply and demand. With no middle ground when it comes to the Toronto housing supply, it leaves few options to buyers. Before government involvement and the spring market, Toronto's supply did not line up with demand. Supply was low, while demand was high, leading to high prices on the supply and demand graph. Currently, Toronto's supply consists of primarily small condos and detached homes. There are few semi-detached and town-homes within Toronto available to current home-buyers.
The current government involvement, spring listings, and demand for detached homes still high, sales have begun to decline. This is reflected through listings being active for longer than a weekend, and less sales as a result, as stated in our recent real estate update.
In April, Toronto's detached re-sale homes hit $1.6 million on average. To make matters worse, young professionals aged 18-39 say:
- 32% plan to buy a home in the next year
- 58% say high prices are why they won't buy a house in the next year
- 19% will stay in their current home
- 17% want a townhouse
- 51% want a detached house
- 13% want a semi-detached
- 17% already own a home
*Source: Environics Research for the Toronto Region Board of Trade. Survey based off 387 people aged 18-39, part of a bigger 1,000 person survey
Of the people who expect to buy in the next year, 81% don't want to live in a condo and 69% want a house with at least 3 bedrooms.
The Board of Trade CEO, Jan De Silva is urging the city or province to begin diversifying our supply to meet the needs of all residents and has even suggested they make it legal to add just one laneway house, coach house, or duplex per hectare in detached home zoning areas. This solution would allow individuals priced out of the detached home market, that don't want to live in condos, to own a home, and would accommodate 45,000 people in Toronto.
Unless this situation changes, the region could be compromising its ability to attract talented professionals to the city of Toronto. Without businesses being able to attract and retain young professionals or newcomer talent, our economy will begin to struggle to succeed.
If you are currently searching for a property or have a plan to purchase property in the near future, contact our Real Estate Group with any questions or concerns you may have. Browse our Real Estate lawyers page and contact them directly, or, call our office at 416-449-1400 for more information.
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