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Are we Plucking the Wrong Goose
The Greater Toronto Area’s (GTA) benchmark home price for June 2024 was $1,110,600. Land is a major part of that cost. We have looked at ways to reduce this burden through leasing and for low-income housing leasing under-utilizing government-owned land. What is not widely discussed is how our tax system makes housing unaffordable. A study…
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Housing market remains steady
Highlights Home sales in Canada rose in June (3.7 percent m/m) along with the average price (1.5 percent). The tables below summarized the key data points. Existing home sales rose by 3.7 percent m/m (seasonally adjusted) in June and remained at the lower end of seasonal norm. While early indications from local real estate boards…
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Unlocking Housing Solutions: Expanding Financing for Auxiliary Dwelling Units (ADUs)
An Accessory Dwelling Unit (ADU) is a small, self-contained residential unit built on an existing property. ADUs can take various forms, such as a detached backyard cottage, a basement suite, or a garage conversion. They include a sleeping space, kitchen, bathroom, and must have a dedicated entrance. While typically built on-site, ADUs can also be…
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Will Labour Market Weakness Push Central Banks to Ease Rates?
Canada’s June employment report revealed a softening labour market. The unemployment rate increased by 0.2 percentage points to 6.4%, rising 1.4 percentage points since the start of last year. While this trend could support further easing by the Bank of Canada, the report also highlighted a significant concern: wage gains. Average hourly wages rose by…
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Affordable Rental Housing: Solving the Revenue Equation
Canada’s social housing legacy has focused on keeping rents low to make housing affordable. By addressing income challenges with housing solutions, low rents have effectively become a substitute for income support. There is a critical need to support low-income workers to improve their skills and increase their earnings, but we need to address the problem…
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Will Homeowners and Homebuyers See Rate Relief in the Second Half of 2024?
With interest rates falling and home prices expected to rise, prospective homebuyers and homeowners with mortgages coming up for renewal are wondering if relief is in sight. While housing affordability is expected to improve, it is unlikely to return to pre-pandemic levels. Regional differences will persist, with Ontario and BC remaining prohibitively expensive, while Alberta…
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Has CMHC Missed the Mark?
CMHC estimates that around 3.5 million net new housing units are needed by 2030 to restore affordability. While this figure has garnered significant attention, a recent study by the Parliamentary Budget Office (PBO) provides another take on this issue. The PBO notes that household formation grew to 460,000 net new households in 2023. Additionally, they…
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