Home Buying In Toronto Has Declined By Two-Thirds In The Young Professional’s Population
Due to the increase in house prices in Toronto, businesses are finding it hard to draw new talent and retain them and this is threatening the future of Canada’s largest economic engine. This is what was concluded from a recent study by the Toronto Region Board of Trade. It found out that in the city, more than two-thirds of the young professionals have eventually ceased to buy a house or upgrade on their homes.
This sign shows how desperate it is for someone who wants to buy a house in Toronto, where prices rose in recent months to above $1.5 million for an average single family home, whereas a standard condo is now being sold for more than $540,000.
Jan De Silva, who is the president and CEO of the Toronto Region Board of Trade, has noted that the problem is making the situation difficult for many employers. “We are hearing it directly from the business community, and we are even experiencing it as an employer,” she said, “We just said goodbye to a member of our team for this reason.”
No Thanks To A One-bedroom Condo
The survey found out that 68 per cent of young professionals, described as those from 18 to 39 years of age, said they are highly unlikely to get a home or upgrade on the ones they have. Of the 68 per cent, 58 per cent stated that it was due to cost.
What was also discovered by the survey is the increased reluctance to buy the small condos that are currently spreading all over the city. 50 per cent of those surveyed said they prefer a single-family home while 81 per cent reiterated the fact that they do not want a condo. However, only 4 per cent said they would want a one-bedroom condo, which is the most common type being built around Toronto.
De Silva has put blame about the incorrect housing mix on little investment in transit in recent years as well as high housing costs in Toronto. It has also been suggested by other experts that the lack of transit is putting an extra cost on downtown locations, while the rise in the cost of family homes is due to the lack of detached home construction.
De Silva said, “Providing young professionals with more options to allow them to live and work in the GTA will ensure we have the talent we need to be one of the most competitive and sought after business regions in the world.”