At this year's Toronto Housing Outlook Conference (#HOCTO), titled 'Your Guide to Toronto's Housing Market', CMHC housing market analysts provided an in-depth forecast for 2016, and explained how economic and demographic trends will impact the housing market in the Toronto Census Metropolitan Area (CMA).
Highlights from the conference held on November 3, 2015, included:
- Housing starts will edge lower by five per cent to 35,950 units in 2016 from 2015, and decline further to 32,500 units in 2017.
- Apartment starts, primarily driven by condominium structures, will dominate housing construction in 2016 and 2017, and exceed 20,000 units in each year.
- Existing homes sales will moderate to 91,000 in 2016 and 87,500 in 2017
"As the backlog of units under construction clears in the Greater Toronto Area (GTA), more resources in terms of land, labour and materials will continue to make room for more high-rise construction," said Dana Senagama, Principal Market Analyst at CMHC. "Existing home sales will slow over the next two years as first-time home buyers will be unable to enter the market."
"Despite improving economic performance, Ontario housing activity is expected to slow over the forecast period as the cost of owning a home continues to increase," said Ted Tsiakopoulos, CMHC Regional Economist. "However, some segments of the housing market will do better than others. Homes in south western and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a lot of activity in those centers as we do for high-density housing which includes less expensive rental accommodation."
As Canada's national housing agency, CMHC draws on 70 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, visit www.cmhc.ca