How can we ease the Toronto real estate market, and continually escalating prices?
The average price of a GTA home is expected to rise by double digits again this year. Prices keep rising because housing supply is not keeping up with population growth and demand. (Toronto Real Estate Board)
5 Things the Government can do to ease the increasing GTA house price, due to low-housing supply:
(by Tim Hudak and Joe Vaccaro, with abbreviated descriptions)
- Fix the “one-size-fits-all” Growth Plan: Instead of a blanket provincial preference for high density, give municipalities more flexibility and create more choice in homes for growing families and empty nesters such as family homes and townhomes.
- Improve the planning approvals process : It can take up to 10 years to go through the government approvals process before we build the housing supply needed for our growing population… new update to the housing priorities so we can get new homes to the market quickly
- Address the “missing middle” of housing supply : Home buyers increasingly face the choice of living in a high-rise condo or single-family home community…innovative solutions like laneway housing and multi-unit homes such as townhouses, stacked flats or mid-rise buildings.
- Target infrastructure to support new housing supply : The province should support new housing supply with targeted infrastructure investments.
- Reduce the Toronto land transfer tax : According to the C.D. Howe Institute, the Toronto land transfer tax negatively affects housing supply because it incents potential home sellers to stay rather than list their property for sale… means fewer starter homes come onto the market for young couples.
See full details of the 5 points in article: Millennials are ‘generation screwed’ on real estate. TO Star, Feb. 22, 2017, by Tim Hudak (CEO of the Ontario Real Estate Association) Joe Vaccaro (CEO of the Ontario Home Builders’ Association)
The suggestions sound good, but what realistically can and will be done in the more immediate future? This is a difficult time for HomeBuyers, especially First-Timers trying to get into an overpriced market, if any of these are to be implemented, it will be a long-term process, hopefully by then, there will have been some pricing correction – if not, I don’t want to know how high prices will have reached.
Christine Ng Broker Royal LePage Signature Realty firstname.lastname@example.org