Supply in the GTA dwindled to just a little over a thousand homes in June 2016 compared to 10,823 a decade ago. This sharp drop accompanied an unprecedented growth in prices in every type of residential real estate, as reported by Garry Marr for the Financial Post
“Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching,” BILD vice president of marketing and communications Michelle Noble said. “The price of low-rise homes has grown exponentially as supply has dropped.”
According to BILD, the average cost of low-rises—which include semi-detached properties, town houses, and row houses—reached $887,543 last month, far above the levels seen in 2015 ($785,800) and in 2006 ($393,398).
The group tagged the existing policy regime as the mail culprit in this scarcity, citing in particular the no-build zone in the GTA greenbelt and the unreasonable restrictiveness in current municipal zoning regulations.
BILD said that similar developments have been observed in the detached segment, in which an average home now goes for $1,061,388 (versus $442,420 in June 2006).
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In its statement Friday (July 22), the Building Industry and Land Development Association (BILD) noted that the availability of new homes in Toronto has declined to just a tenth of what it was compared to 2006.