The province of Ontario has appointed a task force to help solve the housing supply dilemma.
The development comes as part of a more holistic effort by the province that started in July 2019 with the More Homes, More Choice Act, 2019. The legislation is designed to bring about changes that will result in building more homes for the people of Ontario.
How Did We Get Here?
In short, “we inherited a confusing and broken housing development system that’s impossible for people and home builders to navigate and this has led to a housing shortage and skyrocketing housing prices and rents.” (Ministry of Municipal Affairs & Housing, 2019).
With fewer homes available to purchase and a growing pool of buyers competing for them, home prices have continued to rise. This has led to eighty-three per cent of buyers now being unable to afford the average resale home (Ministry of Finance, 2021).
At the same time, lengthy approvals and high costs have slowed down the building of new housing and rentals. So, even though we have identified the problem that needs solving – more homes need to be built – it’s taking too long to get it done.
In combination, there are too few homes available and too many impediments to building new ones. Prices continue to rise, bidding wars abound, and consumers are becoming ever more frustrated because their home seems just out of reach.
The Good News
With the passing of legislation and subsequent release of Ontario’s Housing Supply Action Plan, homebuyers have reason to be optimistic.
The province has laid out a five-point plan to address housing supply and affordability and followed this up by appointing a task force designed to provide the province with expert advice.
The task force experts include representation by financial institutions, not-for-profit housing, indigenous housing, real estate, home builders and economists. The expectation is that the panel will report its findings in early 2022, laying out additional opportunities to expand supply in all kinds of housing.
While clearly there is more work to do before we can expect a more balanced real estate market, progress is already being made because of Ontario’s Housing Supply Action Plan, including:
- In 2020, $25.6 billion was invested in new housing in the province — $4.5 billion more than in 2019. This trend has continued. The year-to-date investment in 2021 is 49 per cent higher than the equivalent period in 2020.
- More homes started construction in 2020 (73,838) than in any year of the past decade. In addition, year-to-date starts in 2021 are currently 16 per cent higher than the equivalent period in 2020.
- Rental construction has surged — rental housing starts in 2020 (10,954) were the highest since 1992; rental starts to date in 2021 are currently 14 per cent higher than the equivalent period in 2020 (Ministry of Finance, 2021).
Remember that help is close at hand. Reach out to this team of trusted REALTORS® today with any questions or concerns about your potential home.***References:
Ontario.ca (2021). Ontario appoints Housing Affordability Task Force.
Ministry of Finance (2021). Chapter 1, Section B: Building Ontario.
Ministry of Municipal Affairs & Housing (2021). More Homes, More Choice: Ontario’s Housing Supply Action Plan.
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