The Q1 preconstruction market delivered 50% more units year-over-year with new launches in high demand from downtown core to Halton, Peel, Durham Region and Hamilton. Milborne believes this desirability will continue with the chronic imbalance of demand exceeding supply in the province. Ontario needs 1.5 million new homes over the next 10 years to keep up with population growth. Our market is tempered by the government’s demand-side solutions such as rising interest rates and the effects on the economy from the war in Ukraine. However, the housing market is woefully undersupplied, as two-thirds of Canada’s housing shortage is in Ontario.
We did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year.
TRREB Chief Market Analyst Jason Mercer
Today, the province is 1.2 million homes short of the G7 average. In the last 10 years, the number of housing starts have incrementally increased from 61,000 units (2012) to 81,000+ (2020). With the new Federal measures’ minimal assistance, contributing “$10 Billion to housing over the next 5 years”, the structural imbalance of demand/supply remains and pricing will increase, albeit slower.
We have a number of exciting projects in the pipeline, and we look forward to introducing them to our broker community soon. Stay tuned to our social media accounts to learn more.
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