GTA housing price gap reaches new heights

May 22, 2015

GTA housing price gap reaches new heights

Greater Toronto, May 22, 2015 - The price gap between new high-rise and low-rise homes in the GTA hit a new record high in April, tripling over the past 10 years, the Building Industry and Land Development Association (BILD) announced today.

The difference is now $326,659, with the average price of a new ground-related home in the GTA at $775,419  while the average price of a high-rise condo is $448,760, according to the RealNet New Home Price Index. This is a significant increase from April 2005 when the gap between a new low-rise home and a new high-rise home was $101,936.

Over the past year the average price of new low-rise homes, which include detached, semi-detached and townhomes, has increased 16 per cent while the average price of high-rise condominiums rose a modest 3 per cent.

The price of new homes has increased significantly since 2005, when the average price of a low-rise home was $378,281 and the average high-rise condominium cost $276,345. 

"Our industry is challenged to build quality, complete communities that people in the GTA can afford to purchase," said BILD president and CEO Bryan Tuckey. "A significant factor in the rising cost of new homes has been increased demand that is far outpacing supply, particularly in ground-related housing."

Inventory levels of ground-related housing available for purchase across the region reached a record low of just 5,171 homes in April, according to RealNet Canada Inc., BILD's official source for new home market intelligence.  These totals are less than one-third of the inventory available to purchasers in April 2005, confirming the significant constraint of low-rise housing supply in the GTA.

High-rise inventory has remained stable, with 19,580 homes available for purchase in April.

"As the price gap continues to grow, new-home purchasers are faced with decreasing choice in housing type," Tuckey said, adding that those most affected are first-time buyers and new Canadians. "Buying a ground-related home in the GTA has become increasingly challenging for most purchasers, many of whom have been taken out of the low-rise market entirely."

There were 2,612 low-rise homes sold across the GTA in April alone, with the majority of sales coming from Peel and York regions. High-rise sales totalled 1,482 homes across the region with 1,021 of those transactions from the City of Toronto.

Monthly New-Home Sales by Municipality: 

April '15

Low Rise

High Rise

Total

Region

2013

2014

2015

2013

2014

2015

2013

2014

2015

Durham

165

287

393

3

40

21

168

327

414

Halton

76

239

451

213

93

113

289

332

564

Peel

393

494

828

135

42

72

528

536

900

Toronto

63

176

109

1,256

1,235

1,021

1,319

1,411

1,130

York

288

691

831

167

122

255

455

813

1,086

GTA

985

1,887

2,612

1,774

1,532

1,482

2,759

3,419

4,094

Jan-April

3,645

5,906

7,001

4,682

6,423

5,673

8,327

12,329

12,674

Source: RealNet Canada Inc.

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statistical backgrounder is available for viewing. For additional information, contact Andrei Zaretski at 416-391-3450 or 416-843-4898; or Amy Lazar at 416-391-3452 or 416-543-3903.