The average price of a new low-rise home hit $887,543 in June, the Building Industry and Land Development Association (BILD) reports; that’s more than double the average $393,398 in June 2006.
High-rise prices have also increased of course but the figures are more modest. The average in June 2016 was $469,516, up 6 per cent from a year earlier and 1.5 times the average price in June 2006.
The BILD report also highlights the significant drop in the supply of new homes in 2016 compared to 2006 with overall inventory at 18,427 compared to 29,968, in 2006. This drop was only slight for high-rise homes (down to 16,363 from 16,560 in 2006) but for low-rise inventory plummeted from 13,408 in 2006 to a near-record low of just 2,064.
"Supply of new low-rise homes has declined dramatically in the last 10 years due to government policy and lack of available serviced land," commented Michelle Noble, BILD Vice President of Marketing and Communications. said. "Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching.”
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Low rise homes in the Greater Toronto Area have more than doubled in price in the past decade; average appreciation in the past year alone was $100,000.