CTV News summarized yesterday, an important twenty page report written by TD’s Deputy Chief Economist, Derek Burleton and Vice president, Diana Petramala about Toronto’s Housing Boom. While uncovering trends and growth in both the population and jobs within the GTA, the report also found five facts that might interest you:
1. Nearly half of GTA renters are spending 50 per cent of their pay cheques on rent. TD looked at earners in the bottom 40 per cent, and found that average rent was about half of their annual income.
TD also found that those with higher income levels and homeowners are also spending similar amounts on housing.
“What’s more, rising costs have been instrumental in driving up average debt-loads in the region, leaving households vulnerable to any unanticipated negative economic shock,” the report said.
2. Likely as a result of the steady growth in resale value, more Torontonians own houses. Approximately 20 years ago, the number of renters and owners in the GTA were split about 50-50. In 2011, the homeownership ration tilted, with about seven in 10 choosing to own.
3. In the 1990s, approximately 25,000 new households were created each year. Since the early 2000s, the average has been closer to 36,000. TD also said that the number of single women owning homes has increased by three percentage points during that period.
4. In the late 1990s, about 40 per cent of new homes built were condo units. By 2014, 80 per cent of new households built were condos, and half of them were built downtown.
5. Condo market and Toronto Community Housing Corporation estimates suggest that approximately 40 per cent of condo units currently under construction will be used as rental properties.