The board, representing 64,000 real estate agents in Ontario, warned that the speculative tax would hurt the stability of small investors. The motion, introduced on December 15, 2021, would ask the
Toronto: Affordable Housing Crisis and the City’s Economy
Dated: August 4 2021
Toronto real estate has been in the news for all the wrong reasons for the last 16 months. The staggering real estate prices and an overwhelming affordable housing crisis in the GTA are putting a damper on the city’s economy. Toronto’s economic policy is witnessing perhaps its darkest hours, thanks to the lack of homes for prospective buyers and bewildering real estate prices.
Residential properties are standing with unsettling pricing figures and leaving all the aspiring home purchasers hopeless and in despair. But who is to blame? Is it the never-ending pandemic or a lack of balance in the supply and demand chain? These have collectively contributed to causing Toronto real estate prices to hit unforeseeable highs and trades hitting at the bottom of the ladder.
However, a newer report analyzed recently that the crisis is hitting the lowest point due to stunted growth in working sectors and a reduced premium wage. Besides that, other factors include lack of industry-level talents, reduced labor supplies, etc. As a result, such an affordable housing crisis drains almost $6 to $8 billion per year from Toronto’s economy.
With sky-high housing costs, lack of wages, lack of job opportunities, and a declining economy, prospective residents of the GTA are flying off to other regions. People are already fleeing to different places within Ontario or far beyond, with better professional and real estate opportunities. Thus, Toronto is falling even deeper into the pit hole of darker economic days. If we look at the stats, then housing prices in Toronto have increased by 115% while working wages increased by only 25%.
The scenario is undoubtedly grave. However, with Tiny steps, the government of Toronto should proceed towards brighter days. One small step can come from condo developers if they mark some specific units as affordable. What do you think?
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