High residential property prices in the Greater Toronto Area (GTA) are rippling out into nearby markets, especially those within commuting distance, according to the latest report from Canada Mortgage and Housing Corp.
Prospective home buyers who have found themselves priced out of the GTA have been looking for cheaper alternatives in Hamilton, Barrie, Guelph, and as far afield as the St. Catharines-Niagara region, driving prices upwards in the process.
Tim Hudak, chief executive of the Ontario Real Estate Association, says the lack of supply is the main factor behind soaring detached house prices in the GTA.
He said: “The best way to ensure young families and first-time buyers have a shot at buying a home is by putting more homes on the market.
“One way to increase housing stock is to allow developers to build more ‘missing middle’ housing types, like townhomes, duplexes and stacked townhomes. Increasing the housing stock is necessary to give buyers more options at affordable levels, in areas that make sense for them to be in.”