By: Susan Pigg Business Reporter, on Mon Jan 19 2015
The GTA is fast becoming the New York of the north and even if house prices cool over the next few years, relief will be “modest,” at best, for beleaguered homebuyers, says TD Economics in a report released Monday.
The GTA is facing “growing structural challenges” that are pushing both renting and home ownership increasingly out of reach of even high-income residents, it warns. Top among them are government regulations and taxation.
The Ontario government’s “laudable” push to higher density housing has gone too far, driving unprecedented construction of tiny condos “typically tailored for shorter-term living,” while seeing the supply of more affordable, family-friendly townhouses and single-family homes plummet across the GTA.
This dramatic shift in the housing market is “contributing to poor housing choice and reducing mobility of residents,” TD notes, urging the need for a regional approach to housing problems, as is now happening with transit.
“Housing affordability has decreased in the GTA to the point where we’re not far behind New York,” said TD economist Diana Petramala, co-author of the report.
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