While the Toronto market has suddenly sprung back to life, there are still a few hurdles ahead. Further interest rate increases which were unlikely a few weeks ago are once again a possibility. That said, the housing market is showing incredible resilience which will be supported through continued demand and ongoing immigration.
The conversation about affordable housing continues. In our view, this is a difficult nut to crack. We live in a capitalistic society and one in which market forces ultimately determine supply and demand. That said, governments, through policy, can alter the environment for supply. We’ve seen this more recently with regards to the Greenbelt Development Plan. Good? Bad? We’ve also seen the implementation of Inclusionary Zoning which forces developers to include affordable housing units within their developments. Again, given that developers are private enterprises and strive to make a profit, will this truly address affordable housing or will it force them to raise the prices of their other units? Time will tell.
Another city led initiative aimed at increasing density is the adoption of Multiplexes, Laneway Homes and Garden Suites. Subject to certain requirements relating to fire safety, laneways homes have been approved throughout the city and do not involve an appealable approval process. https://erikaandmark.ca/blog/laneway-homes/
Similarly, garden suites are allowed to be built in the yards of most Toronto homes and need not require a laneway. It is important to note that if a laneway home or garden suite is being constructed for rental purposes, the rent being charged cannot exceed the City of Toronto Average Market Rent.
Please reach out for further insight. We’re happy to chat and would love to assist you in making a decision that is right for you and your family. Buying and selling is a huge commitment and not one that you want influenced by salespeople with different goals. Ask any of our satisfied clients. We’re supportive, attentive and look out for your best interests, not ours.