Ontario Housing Crisis The Evaporation of Affordability
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The dream of owning an affordable home in Ontario is rapidly diminishing, according to recent data from the Municipal Property Assessment Corporation (MPAC). Over the past decade, the availability of homes priced under $500,000, and in some areas under $750,000, has sharply declined, particularly evident in the Greater Toronto and Hamilton Area (GTHA). The median home value in the GTHA sits at $1.031 million compared to the provincial median of $765,000 as of December 2023, compelling buyers to seek alternatives outside the GTHA.
First-time buyers are facing limited options in Ontario's housing market. In 2013, 74 percent of residential properties were valued under $500,000, but by 2023, this proportion had plummeted to a mere 19 percent, primarily concentrated in cities like Sault Ste. Marie, North Bay, Sudbury, Windsor, and Thunder Bay. Similarly, homes under $750,000, once plentiful, now only make up 48 percent of the market, primarily found in areas such as Kitchener, Kingston, Ottawa, London, Barrie, and Peterborough.
The surge in housing prices isn't confined to detached homes; condominium prices in the GTHA and Toronto have skyrocketed as well. In both areas, the proportion of condos priced under $500,000 has drastically decreased since 2013, further exacerbating affordability challenges. Additionally, semi-detached and townhomes, once considered affordable alternatives, have also experienced significant price appreciation, with inventory in lower price ranges dwindling. These trends underscore the broader issue of housing affordability in Ontario, driven by various economic factors including supply and demand dynamics, rising construction and labor costs, and inflation.
Read the full article on: REAL ESTATE MAGAZINE
