Aug 27, 2002 - Affordability pushes home ownership to record levels

January 18, 2005

August 27, 2002

Affordability pushes home ownership to record levels
Also see link to Report by Will Dunning Inc.:"Trends in Toronto Home Ownership"

TORONTO - Home ownership rates in the Toronto CMA have recorded significant increases over the last five years says a report entitled "Home Ownership - A Place of Your Own," released today by the Greater Toronto Home Builders' Association.

The report reveals that the rate of homeownership in the Toronto CMA has increased from 60.6 per cent in 1996 to 62.8 per cent in 2000. Based on record new home sales, the home ownership rate for Toronto is projected to increase to 65.8 per cent in 2004.

Likewise the homeownership rate for Ontario has increased from 64.2 per cent in 1996 to 66.7 per cent in 2000 and is projected to increase to 69.8 per cent by the year 2004, says the study undertaken for GTHBA by noted housing economist Will Dunning.

The number of homeowners in the Toronto CMA increased by over 100,000 between 1996 and 2000, surpassing the 1 million mark in 2000. By 2004 there will be 1.19 million homeowners in the Toronto CMA, an increase of over 5 percentage points and 277,000 households.

"Record low mortgage rates, strong job creation and high levels of international immigration have fuelled the homeownership surge," said GTHBA First Vice-president Joe Valela, who's company Valemont Homes builds both single-family homes and condominiums.

"The most important factor behind the dramatic rise in homeownership is housing affordability," Valela added. The study revealed that the median priced townhome is affordable to a family with a household income as low as $42,000, the same income required to carry the rent on an average two bedroom apartment, while the average priced home is accessible to a family earning $65,000.

Valela noted that homeownership represents the fulfillment of the hopes and dreams of young families and that the benefits include pride of ownership, an increased sense of community and far greater long-term security. "The equity in peoples homes is their ultimate retirement nest-egg," Valela stated.

Also see
Report by Will Dunning Inc.: "Trends in Toronto Home Ownership" [PDF]

Contacts:
Stephen Dupuis, Executive Vice President 416-391-3453
Jim Murphy , Director of Government Relations 416-391-1997