Haider-Moranis Bulletin: Public-sector interventions seldom make a huge difference in housing markets, and neither do falling sales or prices
Two contrasting pictures of Toronto’s housing market have emerged in the past week. One shows the market is recovering from last year’s slump when prices and sales fell. The other shows the market is becoming increasingly unaffordable, prompting one mayoral hopeful to make affordable housing a central plank of her campaign.
This housing market seesaw suggests the balancing act of maintaining healthy returns in housing while keeping the city affordable is becoming increasingly difficult.
July housing sales data in Toronto paints a picture of a recovering market with both sales and prices higher than a year earlier. After months of falling prices and sales, news of a recovery has elated homeowners, but not somuch others who feel left out by the housing market.
ennifer Keesmaat, Toronto’s former chief planner who is running for mayor, has promised to build 100,000 affordable units over the next 10 years. Details of her plan are not known, and 100,000 may seem like a large number, but for a growing city, these units, even if built, are unlikely to have a large impact on improving affordability.