By 2066, Toronto’s population will grow to almost 5 million. While many of these new Torontonians will be born and raised in the city, a large proportion will come from other parts of the country and abroad.
Before deciding to make this city home, many new residents take time to consider where to live in Canada. Housing markets are one of the biggest considerations. Toronto’s market is unique—and not just because it’s one of the hottest in the country.
Here are a few of the market factors that every potential home hunter in this vibrant and beautiful city should know about.
The Greenbelt Act
Passed in 2005, the Greenbelt Act has led to the protection of over two million acres of land around the GTA. While it serves an environmental purpose, many say it’s also tightened the housing market. According to some commentators, the act has introduced land-use restrictions that have limited the number of detached homes available in the area.
The demand for homes remains strong, and prices have risen. But many buyers are unaware of the role the Greenbelt Act has played.
Municipal Land Transfer Tax
Implemented in 2008, the Municipal Land Transfer Tax is a tax on land sales in Toronto. It makes up a relatively small (but important) portion of the city’s operating budget.
Critics claim that the tax prices, some buyers out of the market. And many homeowners dislike the tax, for obvious reasons. Whatever your opinion, it’s important to know how it will factor into the overall price of any home you’re considering. The city provides an online tool to help buyers estimate how much the tax will amount to on any property they’re considering.
Growing Densification
You’ve probably heard about urban sprawl. For decades, suburban development has been spreading further away from Toronto’s downtown core. Critics have many complaints about this trend, from pollution to traffic jams.
Toronto is supporting the reversal of urban sprawl through its Official Plan—a document created to guide city development through 2031. In large part, the plan focuses on densification, which entails building compact homes closer together. Creating and improving public spaces (such as parks and community gardens) is also part of the densification process.
If you’re considering where to live in Canada, you might be thinking about ruling Toronto out based on housing prices. If so, you should think again. Many new and centrally-located condos and townhouses are becoming available, and the quality of life they offer is often incredible.
The Redistribution of Young Buyers
It’s no secret that that Toronto’s housing market has been hot in recent years. As a result, finding a home that fits a relatively modest budget can take some work. For this reason, many young Torontonians have decided to move beyond the city’s boundaries.
According to one survey, 73% of millennials who moved to communities just outside of Toronto said they did so in order to acquire more space for an equal or lower price than they would pay in the city. As the arts and culture scenes in places like Hamilton continue to develop, the power of these nearby cities to attract younger buyers will likely grow.
At the same time, many young people are choosing to stay in Toronto and live highly-sustainable lifestyles in slightly more compact spaces.
Where you should live will depend on what you want out of your community. If you’re a young home hunter (or a buyer who’s young at heart), you might want to consider the arts and culture scenes in prospective communities—whether they’re in central Toronto, or nearby cities.
Looking for your dream home? We can help you navigate Toronto’s housing market to find a space you’ll love—at a price within your budget. Contact us to get started today.
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