Demand outpaces supply in GTA low-rise market

GREATER TORONTO, July 22, 2015 /CNW/ - The demand for low-rise housing in the GTA is outpacing supply, with homes being purchased as soon as they are brought to market, the Building Industry and Land Development Association (BILD) announced today.

Supply of low-rise homes, which includes detached, semi-detached and townhomes, hit a new record low in June, bringing inventory levels down to just 5,155 across the GTA. There were 2,381 low-rise homes sold in June – exceeding the amount brought to market that month.

"Constrained supply of low-rise housing is significantly affecting choice for new-home buyers in the GTA," said BILD president and CEO Bryan Tuckey. "Limited supply of developable land with essential infrastructure, like roads and sewers, is driving up prices of new homes coming to market."

The average price of a new low-rise home in the GTA hit a record-high $785,800 in June, according to RealNet Canada Inc., BILD's official source for new home market intelligence. Pricing in the high-rise sector remained relatively unchanged at $441,134.

"As prices continue to grow, many GTA residents have been priced out of the low-rise market," Tuckey added. "We need to ensure a healthy supply of low-rise homes in the GTA to accommodate demand for our growing population."

Monthly New-Home Sales by Municipality:

June '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

239

302

340

2

46

36

241

348

376

Halton

97

97

152

67

179

93

164

276

245

Peel

363

594

784

144

67

89

507

661

873

Toronto

28

195

32

969

2,150

2,353

997

2,345

2,385

York

373

902

1,073

121

247

262

494

1,149

1,335

GTA

1,100

2,090

2,381

1,303

2,689

2,833

2,403

4,779

5,214

Jan-June

6,057

9,897

11,889

7,398

11,166

10,921

13,455

21,063

22,810

Source: RealNet Canada Inc.

With more than 1,450 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.

A statistical backgrounder is available for viewing. For additional information, contact Andrei Zaretski or Amy Lazar.

SOURCE Building Industry and Land Development Association

For further information: Amy Lazar, Manager, Communications, 416-391-3452 or 416-543-3903, alazar@bildgta.ca; Andrei Zaretski, Manager, Marketing & Media Relations, 416-391-3450 or 416-843-4898, azaretski@bildgta.ca

RELATED LINKS
http://www.newhomes.org

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890