Price of low rise homes more than doubled in last decade

July 22, 2016

Price of low-rise homes more than doubled in last decade

Greater Toronto, July 22, 2016 - The average price of new low-rise homes in the GTA hit $887,543 in June, more than double the June 2006 average of $393,398, the Building Industry and Land Development Association (BILD) announced today.

In the past 12 months alone, average prices for new low-rise homes, which includes detached, semi-detached and townhomes, grew by more than $100,000. In June 2015 the average price was $785,800.

Prices of new high-rise homes also reached record levels. The average price of high-rise homes in the GTA in June was $469,516, up six per cent from the previous year and 1.5 times more than the $314,370 average of June 2006. The price per square foot in June 2016 was $587, also a new record.

"The price of low-rise homes has grown exponentially as supply has dropped," said Michelle Noble, BILD Vice President of Marketing and Communications.

The number of new homes available for purchase in the GTA continues to decline. In June, the supply of new homes in builders' inventory fell to 18,427. The low-rise market was a major factor in the decline as ground-related inventory hit a near record low of 2,064 homes. The high-rise market also decreased, falling to 16,363.

The supply situation was very different a decade ago. There were 29,968 new homes in builders' inventory in June 2006, of which 16,560 were low-rise and 13,408 were high-rise homes. 

Inventory of detached homes in the GTA fell to 1,002 in June, down from 10,823 a decade ago. The average price of a detached home in the GTA in June 2016 was $1,061,388. In June 2006 the average price was $442,420.

"Supply of new low-rise homes has declined dramatically in the last 10 years due to government policy and lack of available serviced land," Noble said. "Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching.

There were 4,166 new homes and condominiums sold in the GTA in June, down 22 per cent from the previous year. Low-rise sales declined 31 per cent to 1,671 homes while high-rise sales fell 14 per cent to 2,492. A detailed breakdown of new-home sales in June is available below.

June New-Home Sales by Municipality: 

June '16

Low Rise

High Rise

Total

Region

2014

2015

2016

2014

2015

2016

2014

2015

2016

Durham

307

378

625

46

36

31

353

414

656

Halton

99

149

156

177

118

243

276

267

399

Peel

598

779

413

66

98

432

664

877

845

Toronto

187

42

72

2,146

2,428

1,612

2,333

2,470

1,684

York

891

1,069

408

258

226

174

1,149

1,295

582

GTA

2,082

2,417

1,674

2,693

2,906

2,492

4,775

5,323

4,166

Jan-June

9,865

11,912

11,132

11,121

11,185

13,121

20,986

23,097

24,253

 Source: Altus Group

With more than 1,450 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area.  BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.

These results were previously released under the REALNET® Canada name, whose independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets is collected and compiled using a nationally consistent research process established in 1995. Going forward they will be released by Altus Group, powered by a proprietary data platform led by Altus Data Solutions Canada. This team is the formal unification of leading Canadian real estate data companies previously acquired by Altus Group, including REALNET® Canada.

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statistical backgrounder is available for viewing. For additional information or to schedule an interview, contact Andrei Zaretski, Manager of Marketing and Media Relations, at 416-391-3450 or 416-843-4898 orazaretski@bildgta.ca.