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Upbeat Outlook for GTHA Economy to 2031

Tuesday, February 11, 2020 Written by Emmanuelle in News

I would like to share with you a study from the center for Urban Research and Land development.
What is the forecast for the next decade?

A strong GTHA economy demands more housing

The GTHA has experienced strong growth in population through immigration, job creation and wages. However, growth in new home construction has not kept up.

  • Avg. number of jobs created 2014-2019: 75,000 annually
  • Avg. number of homes built 2014-2019: 42,000 annually

Permanent and temporary immigration to the region is booming. Immigration (100,000 of people), in 2019, 2.3 times more compare to 2014
.
The number of households with an average annual income exceeding $100,000 increased roughly 3-fold from 2000 to 2017.

A strong economy impacts housing in many ways.

Population growth and higher-paying jobs may not mitigate continued affordability issues as an undersupplied housing market is likely to present greater challenges.

  • Home prices are expected to increase by 4.5%
  • Rental Prices are expected to increase by 4.5%
  • Wages are only expected to increase by 3.5%

Demand for housing from new household growth is expected to require 50,000 to 60,000 units per year between 2020 and 2031.

Potential solutions to affordability issues.

To help offset affordability pressures, more housing needs to be built in the coming decade than in the previous one. The following steps can help make this a reality

  1. Make the provision of housing the number one goal of land-use planning.
  2. Increase the number of ready-to-build-on sites significantly
  3. Accelerate housing approvals.

 
Would you have any question on our current market, I would be happy to answer.

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