There are more homes being built in the Greater Toronto Area than actual demand, but the boom is doing nothing to address the problem of affordable housing in the region.
For Toronto locals who are on the search for affordable housing, the process might’ve just gotten a bit harder.
Housing in the city and the surrounding area has taken a jump, and seemed to bring the rate of homelessness along with it.
“There is a housing crisis and we, as non-profit housing providers and the community housing sector, are part of the solution,” Marlene Coffey, CEO of the Ontario Non-Profit Housing Association, told Humber News in an email statement Monday.
The increase in more homes being produced can be seen as a positive for some, until the numbers show that prices for the majority of these properties still remain high, despite production outpacing the rate of growth in the GTA.
Data from StatsCan show that between 2016 and 2021, the number of private dwellings – including houses and condos – rose by 5.7 per cent to 16,284,235. In that same time frame, the population also grew 5.2 per cent to 36,991,981 people.
“With stronger policies and more investment into community housing, we can ensure everyone has a home where they can fully participate in their community,” Coffey also said in the statement.
When asked if there was one word would he would use to describe the current GTA housing market, Jacob Gorenkoff, Acting Director of the Canadian Housing and Renewal Association, said the situation is dire.
“Perilous at the moment. We have about 655,000 units of affordable housing in the country. We need about 1.5 million,” he said.
“So we have a shortfall of about I think that’s 855,000 units. And basically what that means is there are a lot of people out there that don’t have housing that suits their needs,” said Gorenkoff.
Although the issue of affordability affects many middle-to-lower income earners, the groups most affected are Generation Z and millenials with most comparing buying a home to a pipe dream.
And, Gorenkoff said affordability is an issue in many cities.
“I moved to Ottawa about five years ago, and just the value of my parents’ house has probably quadrupled,” he said.
Another problem is that people are not moving.
“We’ve found that between 2021 and 2022, there was a big drop in the number of units turning over so what that suggests is that folks are staying in place, they’re staying in their rental units for longer likely because it’s harder now to make that jump into homeownership,” said Christopher Zakher, senior analyst with the Canada Morgage and Housing Corportation.
Statistics show that the majority of those who already got into the housing market in Toronto or in the GTA saw significant growth financially in their property value especially within the last 5-10 years.
But those trying to start their home ownership journey are facing an uphill battle with most units available not being the most affordable.
The city has taken note, citing that over 8,000 people are experiencing homelessness in Toronto, and how they have implemented a plan that started in 2020 to build more supportive housing, with 550 homes being made last year, and more to come into focus by the end of this year.