Affordable housing is top of mind for GTA residents
The affordability of housing in the Greater Toronto Area is an issue that captures a great deal of attention.
Most GTA residents have an interest in the housing market, whether buyers, sellers, homeowners or future homeowners. The issue of affordability is one that causes worry about the future — people are concerned about their ability to be homeowners, and whether their children will one day be in positions to have homes.
According to a recent poll that the Building Industry and Land Development Association conducted with market research firm Ipsos, 70 per cent of GTA residents are concerned about their ability to afford to buy their next home. The poll of 1,500 GTA residents was taken in late August.
More than one third of the people surveyed, 39 per cent, said they were very concerned, while 31 per cent said they were somewhat concerned about the affordability of their next home.
We also asked people if they were concerned about their children’s ability to afford a home when it comes time to buy.
Of those who have either adult children or children under 17, more than three-quarters, some 78 per cent, said they are concerned that their kids will face challenges with affordability when it is time for them to purchase a home. Almost half, 46 per cent, said they are very concerned about their children’s ability to purchase a home.
Affordability is also a major issue for the industry and one that we are passionate about. We are in the new homebuilding and selling business, and we need people to be able to afford to buy our products.
As an industry, we continue to innovate and provide consumers with new housing choices that are affordable. Ground-related developers have been building, and will continue to build, many different types of townhomes as well as semis and detached homes. Developers building condominiums in the GTA will keep finding creative ways to maximize living space and reduce suite sizes to make condos more affordable for new-home buyers.
But innovation alone will not address the challenge of affordability.
Our housing market in the GTA is dynamic and it is complicated. Like all markets it is subject to the economic laws of supply and demand. And, to complicate matters, it is also affected greatly by governments at all levels.
Things such as land use, housing and fiscal policies, government taxes/fees/charges, outdated zoning bylaws and approval processes, and lack of land serviced with infrastructure and ready for development are key factors in the challenge of affordability.
Government fees and taxes amount to an average of one-fifth the cost of a new home in the GTA. A large part of those fees are development charges. Since 2004, development charges in the GTA have increased between 143 and 357 per cent.
Another issue that adds to the cost of building homes is outdated municipal bylaws. Many GTA municipalities are operating under outdated bylaws which can result in project timeline delays and unnecessary expenses for new home buyers.
Resistance to new development — NIMBYism from neighbourhoods and residents who don’t understand intensification policies — can lead to disputes and delays that often lead to increased costs for new homebuyers, as well.
To tackle the issue of housing affordability all those involved need to be engaged in finding creative solutions. Bryan Tuckey is president and CEO of the Building Industry and Land Development Association and a land-use planner who has worked for municipal, regional and provincial governments. Follow him at twitter.com/bildgta, facebook.com/bildgta, and bildblogs.ca.