Toronto's Limited Housing Supply: A Never-Ending Challenge
2 min read.
The issue of tight housing supply in Toronto is not a new one. It has been an ongoing problem for years, with demand for homes constantly outpacing the supply of new listings.
The shortage of new housing and the long waiting time to build new homes are firmly rooted in the GTA. Many residents need help finding suitable and affordable housing, making it difficult to enter the market.
In March of 2023, the Toronto Regional Real Estate Board (TRREB) reported that new listings were down 44.25% year-over-year, indicating that the market is seeing even tighter conditions than March last year. This means that the already limited housing supply is becoming even more limited.
TRREB CEO John DiMichele says that high immigration rates will continue to put pressure on the housing market, which will also spill into greater demand in the rental market. This means that the tight housing market is likely to continue in the near future.
However, there is some hope on the horizon. The Ontario provincial government has committed to enabling the construction of 1.5 million homes in the next few years, which will lead to an increase in housing supply and choices for residents. This commitment is a step in the right direction, but it remains to be seen if it will solve the housing crisis in Toronto.
While the provincial government's commitment is a positive step, more must be done to increase the city's affordable housing supply. A multifaceted approach from the local government will be required to address the issue entirely.
References
GTA REALTORS® Release March 2023 Stats. Toronto Regional Real Estate Board. (2023, April 4). Retrieved April 26, 2023, from https://trreb.ca/index.php/market-news/market-watch
Hanrahan, L. (2023, March 23). Ontario budget raises major questions about feasibility of 1.5m new homes goal. STOREYS. Retrieved April 26, 2023, from https://storeys.com/ontario-budget-2023-new-homes-goal-transportation/
Pasalis, J. (n.d.). Move Smartly Toronto Area Real Estate Market Report: April 2023. Move Smartly. Retrieved April 26, 2023, from https://www.movesmartly.com/monthly-report-april-2023
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