GreyBrook logotype
Investor Login Contact Us

2016 GTA Market Report- Part three: Affordability

Date:
July 13, 2016
Share:

In this installment of our 2016 GTA Market Report series, we will examine how affordability is increasingly becoming an important force in shaping GTA markets.  With the lack of low-rise housing supply in the market, coupled with a growing population driving housing demand,  homeowners are increasingly faced with deteriorating affordability. The average price of a detached home in the City of Toronto is currently $1.2 million, which is pricing many buyers looking for this product type out of the market.

Increasingly, rising home prices are forcing many homebuyers to decide between two distinct lifestyles in the GTA – urban versus suburban. Many families are forced to evaluate the trade-offs between living a more compact urban lifestyle in a condo or moving to peripheral suburban markets for access to larger houses in comparatively more affordable regions.  The search for affordable low-rise options has given way to a new phenomenon, known as “drive until you buy,” where buyers will continue to drive away from the City until they find a house at a price point they can afford.

 

While new home prices continue to increase in suburban GTA low-rise markets, the average price of a new condo unit has remained relatively flat. In reality though, as the size of the average condo has decreased by 30-50% due to improved layout efficiencies, the price per square foot for new condos has increased at a historically rapid rate. This may lead to some buyers spending more for less “house” regardless of whether they purchase a low-rise or high-rise property within the City.

The existing supply and demand imbalance is making affordability a leading challenge for families in the GTA. The upward pressure on pricing, especially in low-rise supply, has created a growing price gap that is forcing many homebuyers to face the dilemma to either move up or move out.
To learn more about the 2016 GTA Market Report, please contact your Greybrook Investment Representative.

Latest Insights

Linx Condos Receives Heritage Toronto Award Nomination

Portfolio Updates
November 5, 2024

We are proud to share that Linx Condos was recently nominated for the prestigious Heritage Toronto Awards in the Built Heritage category. This year’s 49th Annual Heritage Toronto Awards celebrated exceptional contributions to the preservation and evolution of the city’s…

Sasha Cucuz Joins the Latest Episode of Toronto Under Construction to Take a Deep Dive into Real Estate Investment

Insights
October 28, 2024

In the latest episode of the Toronto Under Construction podcast, CEO Sasha Cucuz joins Bullpen Consulting’s Ben Myers and guest co-host Matt Young for an in-depth discussion on real estate investment. The conversation offers insights into Greybrook’s evolution, highlighting its strategic…

Boardroom Brief EP. 03 – Ontario’s New Provincial Planning Statement, 2024: What Impact Will it Have?

Insights
October 23, 2024

On October 20th, 2024, the Ontario government’s Provincial Planning Statement, 2024 (PPS 2024) came into effect, aiming to streamline the province’s land use planning framework. This new policy replaces both the Provincial Policy Statement, 2020, and A Places to Grow:…

Inside Track 2024: Economic Insights from CIBC’s Benjamin Tal and CEO Perspectives on the Current & Future Real Estate Market

Company News
October 22, 2024

The evening featured the prominent Benjamin Tal, Deputy Chief Economist and Managing Director of CIBC World Markets, who delivered his expert analysis of macroeconomic data and real estate trends in the Canadian market. Following his keynote, attendees enjoyed an engaging…

CEO Sasha Cucuz Featured Guest on Recent Episode of The Tom Storey Show

Insights
October 3, 2024

In a recent episode of The Tom Storey Show, CEO Sasha Cucuz joined co-hosts Tom Storey and Steve Karrasch to discuss the financialization of Canadian housing—an interesting topic in today’s real estate landscape. This episode delves into how the increasing…

CEO Sasha Cucuz Discusses Market Volatility, Consumer Sentiment, and More on The Canadian Real Estate Investor Podcast

Insights
September 28, 2024

Characterized by record-low sales activity and stagnant prices, there’s been no shortage of unknowns and questions surrounding the Canadian real estate market this year. Will the Bank of Canada’s recent rate cuts, and potential for more, encourage homebuyers to re-enter…

Velo Blu 2024: Pedal for Blu Genes Charity Ride Raises Over $400,000

Uncategorized
September 24, 2024

The 5th Annual Velo Blu Pedal for Blu Genes charity ride took place on September 13th, attracting over 140 enthusiastic participants. This year’s event not only boasted an impressive turnout but also welcomed new sponsors, collectively raising more than $400,000…

The 15th Annual Constantine Yorkville Run Makes a Sprint Raising Over $561,000 for Charity

Community
September 17, 2024

The 15th Annual Constantine Yorkville Run kicked off on September 8th, raising over $561,304 for 30 Toronto charities and counting! This year’s event offered both an in-person 5K run/walk and a virtual option, allowing everyone to participate and be part…

Boardroom Brief: EP. 02 – Assessing the Impacts of Canada’s Latest Immigration Policy Changes

Insights
September 16, 2024

In our latest episode of Boardroom Brief, we delve into a topic that’s recently been making waves in the news: Canada’s immigration policy. Known for its historically open immigration policies, Canada has consistently maintained some of the highest foreign-born population…

Our House of Assembly High-Rise in Sterling Junction Tops-Off at 16-Storeys!

Portfolio Updates
September 11, 2024

We are excited to announce that our House of Assembly high-rise development in Toronto’s west end has achieved a significant milestone with the completion of the building’s topping-off. This signifies the final stage of vertical construction for the 16-storey high-rise,…

All Publications

Join our newsletter and keep up to date with our news & insights

Contact us