The Canadian Centre for Economic Analysis says that there is no ‘silver bullet’ solution for housing affordability and those who suggest there is either “have an agenda” or do not understand the complexity of the issues.
The report tackles thinking such as affordability simple being about the high price of homes and notes that if wages were rising as fast as home prices in Toronto, the city would rank as relatively cheap when compared against similar cities around the world.
It also challenges views on supply, noting that new starts have doubled in the Greater Toronto and Hamilton Area over the past decade and housing stock per capital has remained steady for 25 years.
One of the key components that the report
highlights is the proportion of homeowners that are in the wrong size home.
It says that around 70 per cent of Ontarians are in homes that are either too large or too small with older Canadians most likely to have surplus space while younger owners are lacking the living space they need.
With limited ability to downsize, seniors are stuck in oversized homes which would benefit younger buyers if they became available.
Therefore, building homes that in the ‘missing middle’ should be a policy decision.
More market update:
Housing affordability requires a broader approach and new thinking according to a new report.