All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: The city needs more options to keep young talent, an unpredictable market stokes anxiety and why every housing bubble looks like the new normal.
Elsewhere: IMF warns about Canadian housing and household debt, minorities are priced out of real estate on the west coast of the United States and Australia's real estate boom has Wall Street wooing a newspaper publisher.
Toronto needs more housing options to keep top talent (Toronto Star)
Research for the Toronto Region Board of Trade shows half of those aged 18 to 39 want to own a detached house and they want it in the region's priciest market — Toronto, where detached re-sale homes cost $1.6 million on average in April.
Toronto’s unpredictable housing market stokes anxiety (The Globe and Mail)
Some buyers who bought a property as recently as March and April are agonizing over whether they purchased at the peak of a market that has started a downward slide.
There is a third possibility: this time is different. Maybe prices in Toronto and the surrounding suburbs really have reached a new normal, and a wide swath of people are permanently shut out of the market.
Yet changes coming to the Ontario Municipal Board will shut down a key approval channel that has helped to ensure the creation of much of the GTA’s high-density housing supplies over the past decade. Furthermore, developers, institutions and private investors contemplating investments in the development of new rental housing are hitting the pause button amid news of new rent control legislation.
We Bought a Crack House (Toronto Life)
It was a crumbling Parkdale rooming house, populated by drug users and squatters and available on the cheap. We were cash-strapped, desperate to move and hemmed in by a hot market. Five years, three contractors and $1.1 million later, our home reno nightmare is finally over.
This is the scandal no one talks about. Officially, everyone is fretting that we may have a housing bubble. Politicians, bankers and regulators go all preacher-faced and proclaim their deep, deep concern.
“What the IMF has said is ... that there’s a level of household indebtedness in Canada that is significant, something for us to watch. The housing market, of course, is something we’re paying close attention to,” he said.
Iveson, who chairs the federation’s big-city mayors caucus, said he and other city leaders plan to make housing and infrastructure a key theme with cabinet ministers taking part in the federation’s annual meeting this week in the national capital.
Canada is in the midst of a housing crisis. Skyrocketing prices in our biggest cities are making it nearly impossible for young people to dream of owning a home, or finding a decent place to rent. It's worse if you live in social housing. In the city of Toronto alone, more than 7,500 units are at risk of closure in the next few years unless money to repair them can be found.
But have the number of units increased much? It appears that housing gains are, in fact, picking up pace in many big cities. But developers are only beginning to respond to years of pent-up demand. Don’t count on finding an affordable place in these desirable villes tomorrow.
The study also found that in 2016, middle-class African-American and Hispanic families were virtually priced out of homeownership in Denver, Los Angeles, Portland, San Francisco, San Diego and Phoenix. In each of those metros, fewer than 5 percent of homes on the market were affordable on the median household incomes for African Americans and Latinos.
Show HUD’s Budget Cuts the Door (New York Times)