Greater Toronto Area’s housing market has continued to surge after pausing a while during the pandemic months of April and May. Record sales activity and project launches in August seems like COVID-19 delayed end-user decision as well as builders’ project openings.
Ontario is the largest province for new arrivals. On average, the GTA accepts over 100,000 immigrants to the region per year, which is 77 percent of Ontario’s total immigration intake. While coronavirus has put a temporary halt on the Canadian economy, Toronto remains a strong foothold that produces 20 percent of Canada’s GDP and vast economic growth that is fuelled by immigrants settling in the GTA. This makes the GTA one of the best cities to invest in real estate because of the strong demand created by the influx of new immigrants.
Despite tons of new construction projects, the figures show on average Greater Toronto see around 40,000 new units every year. The number of households formed between 2011 and 2016 averaged 29,241 units. That’s 18% lower than the average annual completion data of 35,978 from the City of Toronto.
Tight demand-supply conditions in the markets keep the balance tilted towards rapid price increases in the coming months. Although housing affordability is a big concern where prices are accelerating in double-digits.
This summer much of the strength has been concentrated in the single-detached homes. Condos supply has also surged in urban areas. According to the RBC article, it is expected that single-detached and condo valuations to go in different directions in the coming months, with lower immigration and increased condo supply, may weigh on the high-rise condo segment.