SEPTEMBER 2021 |
59
Land Density, Development and a Changing Market
by Brandy Henderson
ANADA’S REAL ESTATE MARKET HAS SEEN AN ACCELERATION IN URBANIZATION TRENDS, REMOTE WORKING GROWTH, AND HIGHER INTEREST IN INDUSTRIAL AND COMMERCIAL SPACE BECAUSE OF THE SURGE IN ECOMMERCE.
Stephanie Winger, Realtor for Vision Realty, says “Several factors have contributed to our inventory shortage, including approvals for development and infrastructure availability. Municipalities have not been able to keep up with demand for building. Bylaws and red tape have created a bottleneck for all types of construction - single family, multi-family, condominiums, and affordable homes.” Southern Ontario is one of the hottest markets for population growth. An analysis by Hemson Consulting reports that the
Greater Golden Horseshoe is estimated to have grown by 780,000 people in the five-year period between 2016 and 2021, representing an increase of more than 50% compared to the growth in the previous five-year period. We simply cannot continue at this pace of low supply, and the pressure to expedite urban land densification is mounting. With continuous approved and pending changes to zoning across the provinces, there is more allowance for dense and affordable buildings like duplexes and triplexes in previously zoned single-dwelling areas. This change in density is also attracting a shift amongst buyers. “Homebuyers are warming up to the idea of co-ownership. What worked in the past is not working any more and buying that dream home as a first-time buyer may not be realistic. Purchasing with a family member or a friend is a great alternative. Costs are shared and the home ownership dream can begin! Owning a
multi family property (duplex or triplex) is also a fantastic investment - living in one unit and renting the other.” Says Stephanie. By 2051, the Greater Golden Horseshoe area is forecast to reach more than 14.8 million people and 7.0 million jobs. Intensification and higher density strategic growth are a provincial priority, making more efficient use of both land, infrastructure, and transit. As referenced in A Place to Grow: Growth Plan for the Greater Golden Horseshoe, “Urban centres will be vibrant and characterized by more compact development patterns that support climate change mitigation and adaptation, and provide a diversity of opportunities for living, working, and enjoying culture. The evolving regional economy of the GGH will continue to mature into an economic powerhouse of global significance. It will function as Canada's principal international gateway.”
finance & investment
The overall intrinsic value of a home has increased, because of the impacts that COVID has had on our lifestyles our homes are now also our workplace, our school, our gyms, our staycation spots and truly our overall lifeline. And yet, the demand for any kind of space has never been higher. To stabilize the market, a substantial increase in new development and urban intensification must occur.
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