House prices in the province have nearly tripled in the last 10 years, far outpacing income growth.
Ontario’s housing affordability task force convened last year and provided 55 recommendations aimed at allowing more people in Ontario to find and afford a home.
The first proposal is to build more homes, which would, in turn, reduce the scarcity of housing and reduce competition. Since the driving factor behind the market appreciation we’ve seen is lack of inventory, this will provide Ontarians with more housing choices and increase affordability.
Another major obstacle the task force must address is NIMBYism (not in my backyard)- the objection against housing development in certain neighbourhoods. To curb this, the report proposes eliminating municipal policies that prioritize preserving ‘neighbourhood character’- which prevents buildings from going up near existing homes.
The task force also recommends changing the Ontario Land Tribunal, where it said a single person appealing a development could tie up new housing for years by paying a $400 fee.
The report recommends that the right of appeal be removed for projects that offer at least 30 percent affordable housing.
The market will start to look a lot more friendly to first-time home-buyers should these recommendations take effect, and it will undoubtedly reduce competition amongst buyers.
Until these recommendations take effect, the housing market will remain a challenging space to navigate. Working with an experienced real estate professional can help eliminate a lot of the stress of the buying process.