Low-rise sector suffers limited supply at year's end
TORONTO, Jan. 23, 2013 /CNW/ - Sales of new ground-related housing in 2012 added up to the second-lowest total since 2000 as constrained land continues to affect affordability for new home buyers in the GTA, the Building Industry and Land Development Association (BILD) reported today.
According to RealNet Canada Inc., BILD's official source of new home market intelligence, the 14,069 new detached, semi-detached and town homes sold in the GTA last year declined by 20 per cent from 2011 while representing 43 per cent of the GTA's new homes market.
The Index Price for a new low-rise home reached a new record high of $632,868 at the end of 2012, representing a 16 per cent increase over 2011 and bringing the price gap between high- and low-rise to a new record of $196,844.
"Governments must acknowledge that the constraints being placed on the market, particularly in the low-rise sector, are having dire results," said BILD First Vice-Chair Steve Deveaux. "Land constraints, regulatory requirements and a complex approval process fraught with delays are seriously challenging the vitality of the low rise sector, as well as housing choice for the new home buyer.
"In simple terms, today's low-rise purchasers are coming out on the losing end of a supply and demand equation."
Total new home sales in 2012 declined by 29 per cent from 2011 to 32,824 homes - finishing 18 per cent below the long-term average after a strong first half.
"In the first half of 2012 our industry experienced an average year and was on pace to bring 40,000 new homes into the market - the number needed to accommodate the 100,000 new residents that call the GTA home every year," said BILD President and CEO Bryan Tuckey.
"In July, the federal government introduced new, stricter lending restrictions that further reduced affordability and housing choice for new home buyers, decreasing consumer confidence and significantly reducing sales in the GTA. "
Sales of high-rise condominiums in 2012 were the fourth-highest since 2000. With 237 projects containing 60,713 units currently under construction, 88 per cent are pre-sold as a large group of home buyers continues to show strong demand for the GTA's condominium market.
A statistical backgrounder can be found here. For additional information, contact Amy Lazar or Andrei Zaretski.
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Source: RealNet Canada Inc.
With more than 1,400 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
SOURCE: Building Industry and Land Development AssociationFor further information:
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