It’s an idea we’ve heard throughout this election campaign — if you build more homes, housing will become more affordable in the GTA.
“It’s always politically effective to oversimplify a message and this is what’s happening here,” Sotomayor said. “It is never as simple as supply and demand.” “The amount of housing that needs to be built to have an impact on the affordability of the market is too high,” she saidby the UK Collaborative Centre for Housing Evidence that reported computer modelling showed 1 per cent increase in the total housing stock would lower home prices between only 1.5 and 2 per cent.
Joel Roberts, a PhD candidate whose dissertation at York’s department of social and political thought, focuses on the drivers of rising Canadian home prices. He says it’s a “false assumption” that simply increasing supply will tamp down prices. You only have to look at the market declines of the last two months.
“You can build all the expensive condos or suburban detached homes you like, it won’t make housing more affordable. What we need is a targeted approach that increases the supply of affordable housing options in particular — that means supporting non-profit organizations, community land trusts, social housing, or regulating the private market through tools like inclusionary zoning.”“Asset prices are subject to different dynamics,” says Roberts.
In January, Scotiabank reported that Ontario needs 650,000 more homes to address its share of a 1.8-million Canadian shortfall. That would bring our supply in line with other G7 nations.housing supply is similar to the U.S., our prices are about 60 per cent higher.
Housing is a responsibility. The market must change.
The price of real estate is a Fed. issue, bec. the Bank of Canada controls the lending prime rate & keeps it low bec. the economy depends on it. So, any provincial 'fixes' are short term band-aids. Want to lower housing prices? Simple - Live outside Ontario. Demand dictates cost.
It’s pretty straight forward. More demand for materials will drive up the prices. Already a shortage of materials at the moment. Throw the energy code at it and the price goes even higher. I’d say let the gov build but that will be even higher $$$$.
Rent control YOU IMPOSED, and nasty Liberal immigration policies, is the reason there are no homes. We need to start electing smart people...NOT YOU
It will if it's a mass build of rent geared to income social housing
Yes it will. Increased supply will bring down the prices. That is a proven fact.
The only expert quoted in this article agrees that it is primarily a supply problem. That two decidedly non-experts disagree with that assessment isn’t terribly important.
and the labour required to do it is just not there, especially if this is supply is to be made through detached housing.
These houses are nothing more than plywood boxes!!! Not worth $$$$$ millions that people are paying due to high demand. Mortgage rates have gone up. That is slowing down sales. Way overpriced!!!
Sprawl is very expensive. Those initial costs go on developers who increase home prices. Sprawling highways will just drive up costs. Make municipalities build infrastructure and limit development charges.