Toronto is one of the fastest growing cities in all of North America in terms of its population growth. Those living in Toronto are already aware of the expansion in population beyond the current capacity of the city. As per several reports, infrastructural growth in Toronto is backing the development of new housing in the city.
Toronto’s population growth continues unabated
- As per several studies and reports, Toronto is witnessing the fastest growth both for Canada and also the USA.
- Studies state that the population of Toronto went up by 77,000 new people for the year that ended on July 2018.
- The population of Toronto increased by more than three times as compared to Phoenix, Arizona, which is the second fastest growing city in all of North America.
- Toronto will now need double of its current housing capacity since the growth in population is expected to outstrip the city’s overall housing supply levels.
- To avoid a crisis in housing, Toronto’s real estate developers are now coming up with more projects to cater to the ever-increasing wave of new residents.
- In the 1990s, the Greater Toronto Area (GTA) witnessed a glut in housing supply when construction levels came down with prices coming down considerably in spite of continued population growth.
- Homeowners had to then make do with one or more generations living in one housing unit and this led to the first supply crisis which drove prices back up to skyrocketing levels.
- Younger Canadian citizens are already living longer with their parents.
- Immigration levels are also strong in Toronto with many people moving to the city for professional purposes.
- Employment levels are also high with several technology majors setting up base in Toronto, thereby creating several new growth opportunities.
Other market factors worth noting
Real estate developers in Toronto are now responding to the slowdown in the housing market by lowering new construction levels. Housing starts have come down by more than 15% in Ontario for 2019 till now as per several studies and reports. The growth of the population in Toronto may also foster growth of the public transit networks and other infrastructure.
- The City of Toronto is seeing major real estate growth.
- As per several reports and studies, Toronto is possibly one of the biggest housing markets in North America for the future.
- The GTA (Greater Toronto Area) had the second fastest growth in population as well and this should spark housing growth for several years to come.
- The population of the City of Toronto grew handsomely as noted above and the population is quite ahead of several major cities like Los Angeles, New York and Chicago.
- The population numbers are fantastic and naturally housing markets will need to keep up with rising demand.
Investors will naturally look for gains by investing in new housing projects. Developers will have to look at more avenues for vertical housing development in order to ensure enough supply levels for homebuyers. Investors will of course be happy that the market will keep growing in the future and naturally this should be driven by growth in the rental markets as well.
Demand will also go up for condominiums, keeping this category red-hot. Construction levels of these property types will continue unabated as per reports and hence prices will continue to grow based on demand and increasing sales figures. The GTA (Greater Toronto Area) and City of Toronto will keep witnessing growth in the near future over several years. Housing demand will also be sparked by economic and commercial growth with Toronto being home to several start-ups and tech companies.
The employment levels will rise, creating more demand for housing throughout the city and its surrounding areas. The steady population growth will also compel developers to complete projects in a timely manner, thereby balancing out supply levels and possibly balancing out prices in the future, stabilizing them more than they are at present. The long-term housing affordability solution should be fixed with the market balancing out.