A bridge too far

The 5 reasons why houses are so expensive in Toronto and why Mayor Oliver Chow can’t do much

Toronto Mayor Oliver Chow has restated her desire to make housing more affordable for Toronto residents. “It’s unacceptable that housing should be so expensive in our lovely city,” she said at the One of A Kind Show.

Despite her good intentions, Mayor Chow may not be able to do much. Toronto housing prices are high because of these 5 reasons:

  1. Limited Land Availability

Toronto’s geographical constraints, including its proximity to Lake Ontario and the Greenbelt legislation, have limited the amount of available land for housing development. As a result, the demand for housing has outstripped the supply, driving up property prices.

  1. Population Growth and Immigrant Influx

Toronto is a magnet for both domestic and international migration, leading to a rapidly growing population. This influx of new immigrants has placed additional strain on the housing market.

  1. Speculators and Foreign Investors

Toronto’s status as a global city has attracted significant foreign investment and speculators in its real estate market.

Foreign buyers, particularly from Asia and the Middle East, have been drawn to Toronto’s stable economy and high quality of life, creating competition for local buyers and driving prices upwards.

  1. Development Costs

The cost of developing new properties in Toronto is substantial, encompassing land acquisition, construction, and regulatory fees. These expenses are often passed on to homebuyers, further inflating housing prices.

  1. Low Interest Rates (in the past)

Historically low interest rates have made borrowing more affordable, prompting many buyers to enter the market. While this has fueled demand for housing, it has also contributed to rising prices as buyers are willing to pay more for properties.

“I still want to make housing more affordable in Toronto”- Mayor Oliver Chow

The 5 reasons why houses are so expensive in Toronto and why Mayor Oliver Chow can’t do much

Despite the obvious challenges, Oliver Chow is still determined to tackle the housing challenge in Toronto Canada.

Speaking at the weekend at the One of A Kind Show, North America’s largest craft and gifts Winter Show, the Mayor said housing is a basic necessity and the exorbitant cost of renting or buying a house in Toronto is making the city less attractive for new immigrants.

She pointed out that the current state of housing affordability in Toronto is untenable, and it is imperative that we take proactive measures to rectify this pressing issue. “No resident should be burdened by the exorbitant costs of housing in our city,” Mayor Chow emphasized.

The Mayor’s ambitious vision has garnered widespread support from the community, sparking optimism regarding the potential positive impact on housing affordability.

“Mayor Chow’s steadfast focus on addressing housing affordability is a source of encouragement. His dedication to this vital issue offers hope to numerous families and individuals grappling with the challenges of housing costs in our city,” noted a local housing advocate.

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