'This a bright red warning light': Toronto's housing crisis to get worse as development applications drop off, BILD says
Toronto’s housing crisis is on track to get “far worse” without government intervention as the region sees a “serious decline” in development applications, according to a new study commissioned by a group representing GTA developers.
According to the study, which was developed by Altus Group Economic Consulting on behalf of the Building Industry and Land Development Association (BILD), the number of new homes being built in the Greater Toronto Area is “lagging significantly behind” population growth.
The report, published Wednesday, notes that the GTA is seeing a “serious decline” in development applications, an issue that it says signals a “further deterioration of housing supply.”
According to the study, the number of applications for new projects fell to 1,225 in 2023, down from 2,187 in 2022, and 2,482 in 2021.
“The study shows that the gap between housing stock and population growth in the GTA is the widest it has been in over 50 years,” David Wilkes, president and CEO of BILD, said in a news release.
“This a bright red warning light on dashboard for all levels of governments. Without bold steps, the housing crisis in the GTA is going to get far worse in the years ahead,” Wilkes said.
According to Wilkes, the GTA housing market is facing “structural challenges” that have contributed to higher construction costs.
The average approval time for a new development in the GTA, according to the 2024 study, is 20 months, a delay that drives up the cost of the development.
In the GTA, the study notes, fees, taxes and charges collected by all three governments account for about 25 per cent of the cost of a new home and municipal fees and charges make up a “significant portion of that.”
The report also noted that the average household would need to dedicate about 60 per cent of their monthly income to pay their mortgage in the regions “highest cost areas,” which include Toronto, Mississauga, Oakville, and Vaughan.
"To improve housing affordability, governments must act to accelerate approvals and reduce the overall tax burden they are placing on new home buyers,” Wilkes said.
“Without bold and immediate action, the region’s housing crisis will be exacerbated, leading to fewer housing starts, reduced jobs, and compounded affordability issues in the years ahead."
CTVNews.ca Top Stories
DEVELOPING MPs to vote on Poilievre's motion of non-confidence, as Bloc gives PM Trudeau an ultimatum
Members of Parliament will cast their first confidence vote of the fall sitting on Wednesday, but with it poised to fail, political posturing is already ramping up over future tests of the Liberal minority government.
'She was victimized by a predator': B.C. court reverses transfer of $1.4M townhouse in elder abuse case
A man who "systematically isolated, manipulated, deceived, abused, and exploited" an elderly North Vancouver woman has lost his ownership stake in her home.
Doug Ford says he wants to build a tunnel under Hwy. 401
Ontario Premier Doug Ford says he wants to build a tunnel under Highway 401 that would stretch from Brampton to Scarborough.
Yogurt recalled in Canada over risk of illness
A major yogurt maker is recalling one of its brands in Canada over concerns that it may cause illness in immunocompromised people.
Mortgage changes: Cheaper entry into housing market at steeper costs
Mortgage rule changes allow easier entry into the housing market with lower monthly payments, but also an increased cost of repaying a mortgage.
Amadeus? Amadeus!: Lost childhood manuscript of Mozart discovered in Germany and recorded for the first time
Careful listeners of Mozart may notice an unfamiliar melody attributed to his childhood works in their streaming feeds this week.
1 in 3 children worldwide is now nearsighted, study shows
More than a third of children around the world were nearsighted in 2023, and this proportion will rise to almost 40 per cent in 2050, according to new research.
Coverage denied: Canadians hitting roadblocks with insurers after installing solar panels on their homes
More Canadians are installing solar panels on their homes, but some are facing challenges when it comes to getting home insurance after the panels are put in.
Pope expels a bishop and 9 other people from a Peru movement over 'sadistic' abuses
Pope Francis took the unusual decision Wednesday to expel 10 people – a bishop, priests and laypeople -- from a troubled Catholic movement in Peru after a Vatican investigation uncovered 'sadistic' abuses of power, authority and spirituality.