The demand for low-rise housing in the Greater Toronto Area is outpacing supply because homes are being purchased as soon as they are brought to market, says the Building Industry and Land Development Association.
The current supply of low-rise homes in the city (which includes detached, semi-detached and town homes) hit a record low in June. Inventory levels dropped to just 5,155 across the GTA, even while 2,381 low-rise homes were sold in June.
“Constrained supply of low-rise housing is significantly affecting choice for home buyers,” says BILD president and CEO Bryan Tuckey. “Limited supply of developable land with essential infrastructure, like roads and sewers, is driving up prices of new homes coming to market.”
Read: Harder housing correction possible following rate cut
The average price of a new low-rise home in the GTA also hit a record-high of $785,800 in June, according to RealNet Canada Inc. But, pricing in the high-rise sector remained relatively unchanged at $441,134.
“As prices continue to [rise], many GTA residents have been [left] out of the low-rise market,” says Tuckey. That’s a problem, he adds, due to the growing population.
Read:
World’s most expensive real estate
Developers banking on soaring home prices