Low-rise homes record impressive 10-year performance

by |
Further proof that property investment in this one hot market has been a solid choice – as if it was really needed.

The average price of a low-rise home in the Greater Toronto has more than doubled since 2006, according to the Building Industry and Land Development Association (BILD).

The average price in June 2016 was $887,543, up from $393,398 ten years ago.

A great deal of the those price gains were made recently.

Over the past year, average prices for all low-rise homes in Toronto jumped by over $100,000; the average price was $785,800 last June.

Constrained supply has helped bolster prices and, as a result, the price of lowrise homes has skyrocketed, according to BILD.

“The supply situation was very different a decade ago. There were 29,968 new homes in builders' inventory in June 2006, of which 16,560 were low-rise and 13,408 were high-rise homes,” BILD said in a release. “The story for detached homes is the most dramatic. On June 30 there were 1,002 single detached homes in the GTA, down from 10,823 a decade ago. The average price of a detached home in June 2016 was $1,061,388, compared to $442,420 in June 2006.”

Inventory fell to 18,427 in June and condos make up 16,363 of those units. Low-rise supply, meanwhile, was a paltry 2,064 last month.

"Supply of new low-rise homes has declined dramatically in the last 10 years due to government policy," Noble said. "Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching."

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions