Toronto Houses for Sale – The More Homes Built Faster Act, Ontario
Real Estate Canada is grappling with a housing crisis that is affecting home buyers across the country. Canada’s four most populous provinces – Ontario, Quebec, British Columbia and Alberta – bear the brunt of this crisis, given their popularity with new immigrants. Ontario, in particular, has set an ambitious target of building 1.5 million new homes by 2031 to address the situation. Approved in 2022, the More Homes Built Faster Act, or Bill 23, lays out a plan to achieve this goal.
As part of this initiative, Toronto is taking steps to meet and exceed the target of 285,000 new homes by 2031. The city has released a work plan for its Housing Action Plan 2022-2026, outlining measures to accelerate home construction in Toronto. These efforts are aimed at increasing the availability of Toronto Houses for Sale and helping to alleviate the housing crisis.
More Homes Built Faster Act, 2022
In a bid to address the housing supply shortage, the Ontario government recently passed the More Homes Built Faster Act, 2022. This new legislation seeks to streamline planning and approval processes, provide stronger homebuyer protections, and reduce government fees that often add thousands of dollars to the cost of a new home.
By working with local municipalities, the private sector, not-for-profits, and the federal government, the province aims to build 1.5 million homes over the next decade. To achieve this ambitious target, the government will promote building near transit and reduce bureaucratic costs
Ontario has increased the Non-Resident Speculation Tax rate to 25 percent. It has expanded the tax province-wide to restrict non-resident investors from speculating on the housing market. The government is implementing stricter professional standards for home builders and vendors, increasing fines to deter unethical behaviour, and allowing Tarion to extend warranties on new homes to protect home buyers better.
Progress So Far
According to recent Canada Mortgage and Housing Corporation data, Ontario’s target seems challenging. With only 71,545 housing starts projected for 2023, Ontario may need more than the planned 150,000 annual housing starts to reach the target.
The Ontario government’s 2023 budget projections indicate that the province’s target for new homes is slipping each year. New housing starts are expected to remain below 80,000 annually, revised downwards from the previous year’s budget estimates. However, the government has implemented counter-measures like reducing and exempting fees for developers to spur new home construction.
In conclusion, Ontario’s housing market faces significant challenges in meeting the demand for affordable housing. While the More Homes Built Faster Act could lead to more self-regulation in the housing market, how it will impact housing development and affordability remains to be seen.
The housing market in Ontario saw a resurgence in home prices in February 2023, with the average home price reaching $865,279, up 8% from the previous month. The recent price increase may indicate a return in demand and provide some support to the housing market.
The real estate market in Toronto and Ontario has experienced some fluctuations recently, but experts believe that 2023 presents an excellent opportunity for investors to enter the market. First-time investors must research and carefully consider their investment options to make a wise decision. Consulting a reliable real estate brokerage, keeping an eye on market trends, and being prepared for any changes can also help ensure Canadian real estate market success.
By Hema Chandrashekar
Sr. Content Editor, Save Max Real Estate