Average low-rise home price leaps 16%
There is no end in sight to the rising price of new low-rise homes relative to highrise condominiums in Canada’s largest city, say Toronto builders.
A new report from the Building Industry and Land Development Association says the average price of a new low-rise home, which includes detached, semidetached and townhouses, was $783,995 at the end of May. That’s a 16 per cent jump from a year ago.
Meanwhile, the average price of a new highrise condominium was $440,463, relatively unchanged from a year ago. The gap between the average new highrise and low-rise home jumped $100,000 from a year ago and now sits at a record $343,492.
“The rapidly widening price gap is an indication that demand is far outpacing supply in this part of the market,” said Bryan Tuckey, president of BILD, in a statement. “As the price of ground-related housing continues to grow at a record pace, it’s becoming increasingly difficult for GTA residents to afford a low-rise home.”
There were 5,198 new lowrise homes available to buy in the Greater Toronto Area at the end of May, up slightly from the record levels at the
Demand is far outpacing supply in this part of the market
end April.
But the current amount is just 20 per cent of total newhome inventory which BILD says illustrates the state of the low-rise housing supply.
“The effect of new-home pricing is also trickling down to resale homes, which is something that affects all homebuyers,” Tuckey said. “As inventory borders on record low levels, we need an adequate supply of low-rise homes to ensure healthy levels of housing choice that are necessary to accommodate the needs of our expanding region.”
Critics have suggested government policies aimed at intensification have created a shortage of detached homes and other low-rise housing, helping to drive prices to record levels across the GTA.
This month, the Toronto Real Estate Board reported that the average sale price of an existing detached home in the city of Toronto was $1,115,820 in May, an 18.2 per cent increase from a year. Across the GTA, the average existing detached home sold for $829,792 last month, a 14 per cent increase from a year ago.
Existing condo prices have not been rising as rapidly. The average condominium sold for $391,901 in May but that was only a five per cent rise from a year ago.