Markham condos for sale . House prices in Toronto are in short supply. Why haven’t we stimulated housing construction yet? Toronto is the largest city in Canada and one of the hottest real estate markets in the world.
At a time when the Toronto real estate market is facing supply problems, the Canadian Mortgage and Housing Corporation admits it is not sure why soaring prices have failed to stimulate the construction of more homes.
In addition, the rate of replacement of demolished old housing estates by new housing estates is slower than that in the past few years, and the completion time of multi-family housing projects has doubled, and the number of new housing available to potential buyers is much less than that of a few years ago. Some experts believe that part of the reason may have something to do with the ambitious development plan built in the Greater Toronto area 10 years ago.
Some developers say the updated growth plan for 2017 provides higher density targets, both of which have created a mismatch between demand and supply and added a new layer of municipal regulations.
Clayton (Frank Clayton), an economist at Ryerson University’s (Ryerson University), points out that part of the problem stems from the plan’s focus on protecting the environment and traditional sites rather than development.
So far, the authorities have tried to cool so-called speculative demand by adopting stricter mortgage requirements and imposing a tax on overseas buyers. Over the past three years, property prices in Toronto and Vancouver have risen by 43% and 63% respectively, and the authorities are now starting to study how supply bottlenecks push up prices.
Toronto is the most regulated city in the country and has been approved for longer than other cities, according to a 2016 survey of land use regulations conducted by the Fraser Institute (Fraser Institute), a think-tank. Some developers have indicated that at present, about 200 conditions have to be met before approval can be obtained from the authorities.
However, the Ontario government has denied the above criticism of excessive regulation. The shortage of affordable housing has led some residents to leave Toronto for the city of Mandike.
