Fortress Real Developments' Market Manuscript Surveys Ontario Urban Planners in the Private and Public Sectors
- Fall "Pulse Edition" of the Market Manuscript examines Ontario's Fair Housing Plan, global foreign buyer taxes, and land-use economics
- Majority of professional planners surveyed believe urban containment policies like the Places to Grow and the Greenbelt contribute to the high new home prices in the GTA
- Lack of supply and slow planning approvals among the main culprits for price inflation in the Greater Golden Horseshoe (GGH)
TORONTO, Sept. 27, 2017 /CNW/ - In the report released earlier this week by Fortress Real Developments (Fortress), Senior Vice-President of Market Research and Analytics Ben Myers presents findings and relevant statistics on the impact of supply and demand on residential house prices. Mr. Myers is an analyst with over 15 years' experience researching real estate markets across North America. The report includes original research and surveys compiled by Fortress, supplemented by statistics and data from several independent third-party sources, including private and public sector urban planners.
The lack of affordable residential units and the increase in homeownership costs has been a topic of heavy discussion across Canada over the past year, with Toronto/GGH and Vancouver being the two most affected areas. Several key factors have been identified: foreign ownership, house flipping, slow approvals of new developments, and a lack of new and resale supply. The report evaluates these factors in greater detail. The highlights in this section are:
- One of the primary drivers for high new home prices is urban containment policies like the Places to Grow Act and The Greenbelt Act;
- The time period needed to complete the approvals process in the City of Toronto has more than doubled in the past 10 years;
- Anti-development (NIMBY) groups are looking out for the interest of neighborhoods they represent as opposed to future housing demands of the city;
- Approved developments are often significantly smaller than the proposed build, taking away dozens of possible homes, and stunting growth;
- Reducing political and NIMBY planning influence in the GTA would help increase supply;
- Municipalities need to incentivize developers to offer more three bedrooms for sale to accommodate more families in high-rise apartments.
"Land use planning has wide ranging and often unobserved economic and social consequences," said Myers. "This report compiles our findings from surveying private and public urban planners to determine the factors that are causing rising housing costs and how recent changes to the intensification target and the OMB will impact the decision making of buyers and sellers in Ontario moving forward."
The full report is available at - https://fortressrealdevelopments.com/news/mm8-fortress-fall2017/
About Fortress Real Developments
Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes real estate development opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, and commercial market segments. For more information visit: http://fortressrealdevelopments.com
Twitter: @FortressRDI, @BenMyers29
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SOURCE Fortress Real Developments
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