IMMIGRATION AND HOUSING SUPPLY
The second quarter of 2022 marked the fastest population growth in Canada since the height of the baby boom, with our population growth pace the highest among the G7 nations. This is great news for our country because immigrants keep us in skilled workers and boost our economy. The story is a little different when it comes to housing. Immigration fuels the demand for more new homes and condominiums, and our supply is greatly lacking in that regard. Demand continually outpaces supply because of labour and materials shortages, as well as increasing development charges and red tape when it comes to approvals.
Last year, the provincial government announced that we need 1.5 million new homes over the next decade. To remedy this, things must change at the municipal level to make better use of the developable land available in Toronto and the Greater Toronto Area. Zoning rules must accommodate new housing development, especially for the missing middle and high-rise types.
It will be interesting to see what the current election results do for the new home industry and for frustrated would-be buyers who either cannot afford, or cannot find, the homes and condos that will meet their needs. Toronto Mayor John Tory promised more missing middle residences and increased density where traffic nodes are located. We await the details on how and when that can be accomplished – and sooner rather than later. Immigration will continue, as Canada is one of the most desirable residential destinations in the world.