Overview
The terms “housing crisis” and “condominium boom” have defined the last decade of headlines attributed to Toronto’s real-estate trends. Despite the introduction of corrective measures, concerns regarding the existence and potential scale of a “housing bubble” persist. At the same time, we are directed to the sheer number of cranes, which dot Toronto’s skyline. As of May, 2021 this number surpasses 200, which is greater than that of North America’s other three largest cities - New York, Los Angeles, and Chicago – combined. The results are staggering. Toronto’s skyline is rapidly evolving and expanding. This continued transformation is evident on a monthly, and sometimes even weekly, basis. This begs the question – in a city which is expanding so rapidly, with a constant supply of new condominium units, how can Toronto be experiencing a housing crisis?
Asking the Right Questions
This is where the basic economic principles of supply and demand come in. Through the construction of mid- to high-rise apartment buildings, we are continually increasing our supply of housing. However, we will not solve the housing crisis by answering the question “how much are we building?”. This is an over-simplification of a very complex problem. Instead, we need to begin by asking the right questions, in order to identify the key underlying issues and challenges. In this case, the questions we should be asking are “what are we building, where are we building it, and for whom?”.
Up until very recently we, as collective group of residents and industry professionals, were not asking the right questions. This has begun to change, thanks in large part to the collective research of a small number of city builders and academic institutions, as well as the voices of an increasingly informed and engaged population. In asking these questions, we have begun to understand the underlying two significant issues and challenges. The first is that there is a mismatch between the forms of housing which are being supplied and those which are demanded. The second is that there are a number of complex contributing factors to the housing crisis, which we need to understand. These include interest rates, mortgage regulations, development charges, land transfer and property taxes, immigration policy, and global economic forces. Some of these factors are beyond the City’s control, while others have already been the subject of significant discussion, debate and political action. However, there remains one key factor which contributes to both parts of our underlying issue. It also happens to be a factor which is within the City’s control - the municipal land use policy and regulatory framework. Please click Policies and Regulations to learn more.
Up until very recently we, as collective group of residents and industry professionals, were not asking the right questions. This has begun to change, thanks in large part to the collective research of a small number of city builders and academic institutions, as well as the voices of an increasingly informed and engaged population. In asking these questions, we have begun to understand the underlying two significant issues and challenges. The first is that there is a mismatch between the forms of housing which are being supplied and those which are demanded. The second is that there are a number of complex contributing factors to the housing crisis, which we need to understand. These include interest rates, mortgage regulations, development charges, land transfer and property taxes, immigration policy, and global economic forces. Some of these factors are beyond the City’s control, while others have already been the subject of significant discussion, debate and political action. However, there remains one key factor which contributes to both parts of our underlying issue. It also happens to be a factor which is within the City’s control - the municipal land use policy and regulatory framework. Please click Policies and Regulations to learn more.