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

Amy Lazar, Manager, Communications, 416-391-3452 or 416-543-3903, [email protected]; Andrei Zaretski, Manager, Marketing & Media Relations, 416-391-3450 or 416-843-4898, [email protected]