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It’s no secret that Toronto’s housing crisis is not slowing down any time soon as we move through the first quarter of 2022.
As home prices continue to soar and housing supply cannot keep up with demand, Toronto is maintaining its spot as one of the most unaffordable cities in not only Ontario, but all of Canada.
According to the most recent data released by the Canadian Real Estate Association (CREA), the median sale price for single detached homes in Toronto reached a record high of $1.38 million in the last quarter of 2021.
Further, the prices for semi-detached homes, condos, and condo towns also reached all-time highs in the fourth quarter of 2021, jumping 28.7% to $1.1 million, 17.1% to $638,000, and 26% to $800,000, respectively, year-over-year.
What contributes to the housing crisis in Toronto?
Several factors impact the Toronto housing crisis. Most notably, supply and demand and low-interest rates are major contributors to the prevailing housing bubble in Ontario and Toronto.
Supply and demand
Supply and demand play a critical role in the housing crisis in Ontario and Toronto. Ontario has one of the lowest numbers of houses per capita out of all the Canadian provinces. This means there is a lack of dwellings to keep up with the growing demand to live in the province.
Further, when it comes to cities like Toronto, and the surrounding area of the GTA, these tend to be attractive places for people to live and for newcomers to reside. City centres have everything residents need close by, including amenities, shops, and public transit options.
The desire to live in or near the city also drives demand, which, in turn, increases real estate prices.
Low-interest rates
Record-low interest rates have also contributed to the Ontario housing bubble.
With the Bank of Canada’s prime interest rate remaining at 2.45%, those who can afford to buy in Canada’s red-hot market, including in sought-after cities like Toronto, have taken advantage of this low rate, thus exacerbating the already existing Ontario housing crisis by causing a further hike in real estate prices.
Dealing with Debt in Toronto?
Toronto is a vibrant and bustling city that is an attractive home to many, but the lack of affordability has contributed to rising debt for a number of residents.
If you are dealing with debt and want to get your finances in check, finding a debt consolidation service in Toronto may be your best option.
A reputable debt consolidation service will help you get your finances back on track and allow you to regain control of your monthly payments.
Alpine Credits is a leader in debt consolidation services, helping homeowners find the right solution to managing their debt.
For more than 50 years, Alpine Credits has been an effective alternative to banks and credit unions, helping homeowners get approved for debt consolidation loans—and fast. All they have to do is own their home or another piece of real estate to qualify. It’s that easy.
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