In the recent budget released in Toronto, $11 billion is to be set aside for affordable housing but the city is not only in need of financial aid but also measures by the federal government to control the housing market. Evidently, affordable homes can no longer be found in Toronto with the few available homes not in proper order. The high home prices in the city have prevented a lot of people to stay out of the market. Home prices in the province is also affecting rental cost as many who are unable to afford homes are tuning to renting for the time being until they can save enough to make down payments. But it is expected that the situation in Toronto will get even worse before it finally subsides.
According to Janet Mason, University of Toronto policy and governance professor expressed that to see the new fund provided in the budget to be used for making “down payment” which she says is a major challenge that is preventing many form entering the market. Being part of Mayor John Tory’s task force on Toronto Community Housing, Mason suggests that the fund should be used for a targeted purpose rather than sharing it across the country to embark on home repairs which in the long run will be very insignificant. The fund should be used to address the lack of supply in the city. Although the city is in great need of repairs the supply of new homes is also essential. It is very difficult to determine the right move to make in real estate markets.
Many Toronto residents have over the years complained of repair issues but one cannot also ignore the rapid demand for homes in the market.
Caught in this dilemma, people are left with very little options and one of which is renting. People especially on the wait list of the TCHC are provided with rent supplements which gives them money to pay of the units they reside in but with the rental sectors also seeing a hike in prices, it also becomes difficult to find rental units. Even though it is uncertain as to how much will be given to Toronto for housing affordability, they city can however argue that it is in dying need of help solve its housing crisis.
Yet sill Mason is hopeful that the government will intervene in the housing market.