High housing prices could push families out of GTA
April 1, 2022
Typical new condo in the GTA costs more than $1.1 million. | GTA Homes
As typical new condo apartment prices soared over $1.1 million in February and new detached house prices neared $1.9 million, the president of Toronto’s Building Industry and Land Development Association (BILD) warned high home prices may drive families out of the Greater Toronto Area (GTA).
The GTA posted 3,630 new home sales in February—17 per cent above the 10-year average, according to Altus Group.
Sales of new condominium apartment units, with 3,048 transactions, were up 78 per cent from February 2021 and 67 per cent above the 10-year average to dominate the market. It was a new monthly high for condominium apartment sales for February 2022.
New single-family homes accounted for just 582 units sold in February—54 per cent below the 10-year average.
The February benchmark price for new condominium apartments was $1,177,739—up 13 per cent over the last 12 months. The benchmark price for new single-family homes was $1,858,713—up 35.3 per cent over the last 12 months. Both price increases represent record highs.
“The steep increases in benchmark prices that we have seen over the last few years reflect our region’s critically low supply of new homes,” said Dave Wilkes, BILD president and CEO. “If this trend continues unchecked, we are all going to feel the effects, as more and more families make the difficult choice to leave the GTA in search of housing and our region loses out on economic growth, jobs and tax revenues. Now is the time for all parties to come together and act decisively to address our housing supply and affordability crisis.”
Single-family remaining inventory was at a record low of 546 units in February across the GTA. Total remaining inventory rose slightly compared to the previous month, to 9,165 units, as several new condominium apartment projects opened February 2022. These total units still represent only three months of total inventory based on average sales for the past 12 months. A balanced market would have 9 to 12 months of inventory, according to Altus Group.
