Toronto’s real estate market has been witnessing steady growth in recent times, thanks to growing employment, incomes and people adjusting to measures like the mortgage stress test. The real estate market in Toronto has witnessed a positive rebound in terms of sales volumes and property prices alike. New projects are planned in droves for the city while its growing status as a major technology hub has fueled further growth as far as the housing market is concerned. The steady influx of people into the city for professional pursuits has naturally increased housing demand to sky-high levels.
Naturally, the property prices in Toronto continue to remain at increasingly high levels. This has sparked concerns of affordability for a large chunk of entry-level and mid-income buyers down the line. As a result, there are plans being chalked out by the authorities for tackling the impending affordability issue as far as housing is concerned.
New mega housing plan proposed for Toronto
The Mayor of Toronto, John Tory, has proposed a mega $23.4 billion housing plan for Toronto throughout the coming 10 years. This plan will aim at constructing new rental units and preventing instances of evictions in a major move to address the affordability question. The cost to the City of Toronto for the proposed HousingTO 2020-2030 Action Plan is expected to be in the vicinity of $8.5 billion and $5.5 billion out of this tally has been committed already in tandem with $14.9 billion from the province and also from Ottawa as per reports.
Tory has already stated that this housing plan has to be a priority issue since this will back most households who are facing issues in paying rentals and maintaining roofs over their heads without being evicted. Better access to housing for Toronto residents will naturally boost the whole city according to him. Toronto is the 4th biggest city in all of North America and is home to 2.9 million individuals while having some of the costliest housing prices in the whole continent itself. As a result, housing affordability has ballooned into a major issue of sorts along with impending homelessness and growing evictions as per experts. The HousingTO Action Plan has an external advisory committee as well which is co-chaired by David Reycraft, one of the strongest proponents of measures to tackle the crisis.
He has already stated that the plan lays out a highly ambitious mission and blueprint for measures that will have to be taken instantly and also over the long haul. He has also stated that execution will be done via partnerships and other collaborations with sector partners and those who have experience in this field. This proposal has already reached the planning and housing committee of the City of Toronto on the 10th of December, 2019 and has been debated at the city council meeting as well. The plan has several action statements laid out for supporting close to a whopping 341,000 households over a period of 10 years.
Core actions proposed in the plan
There are several core actions out of the 76 separate measures which have been proposed in the new mega housing plan for Toronto. Some of these include the following:
- Adoption of the revised Toronto Housing Charter: Opportunity for All
- Adoption of a new definition for the affordable housing program on the basis of household income
- Boost initiatives taken for reducing evictions and homelessness for several households
- Preservation of rental homes which exist at present
- Creation of a multi-sector land bank for providing support and approval to 40,000 brand new supportive and rental housing units
- Engagement with the provincial and federal governments for execution of the brand new Canada Housing Benefit and also backing the establishment of affordable and supportive rental housing units
These are measures that may go a long way towards ushering in more affordability for the Toronto housing market while also giving a leg-up to the realty market in the city and its surrounding areas.