So much has been written these past few years regarding changes in the Toronto real estate market which may have resulted in a shortage of housing that, many experts are calling a crisis. In short, people living in Toronto are having great difficulty finding affordable Toronto real estate to buy & even rent.
What has led up to this current situaltion in the Toronto real estate market? There have been mulitple reasons cited by many experts who have written about it in the Toronto real estate news. I will cite just a few.
For instance, there has been a a significant population growth particularly due to an increase in tech jobs & new immigrants in the Toronto real estate area but not enough Toronto housing supply to meet the needs.
The rate of new Toronto homes being built are significantly less than those being demolished due to a highly regulated environment that included more complex & costly approval procedures. Developers may have also been delaying projects in anticipation of reaping the rewards of higher Toronto home prices.
The average income for a person living in Toronto has not increased in line to match the 43% increase in average Toronto home prices.
Lastly, the government & banks have implemented stricter lending criteria limiting the number of qualified home buyers and for much less as well as imposed significant taxes on foreign investors over the last 2 years.
All of this has resulted in those living in Toronto to seek rental accommodations for more, with less. This has in turn decreased the number of rentals available as well.
In this ever-changing environment that is the current Toronto real estate market, it is natural to have many questions before buying or selling Toronto real estate. Please contact our office at 905-796-5200.