REAL ESTATE AND INVESTMENT

Land Density, Development and a Changing Market

CANADA’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.

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.

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.”

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As planners intensify and increase land density in urban areas and the available market of multi-dwelling properties grows, the value of traditional single-family homes increases even further.

“Single family homes in large markets such as Toronto and Vancouver are already a luxury purchase - while smaller markets may not see the same extreme price tags, single family homes will rise in commodity. Towns and cities are growing and the only way to expand is by creating more dense property buildings and condos and allowing secondary dwelling units.” Says Stephanie.

As while the inventory and commodities change, so do the buying habits.

“The pandemic provided clarity for people in many areas of life, especially with housing needs. Location no longer became the main factor. Working from home and new arrangements provided the need for home offices as well as the option to live further from work, or even in an entirely new area. I've noticed more out of province moves as a result,” says Stephanie.

And what about the varying family dynamics, changing support systems and a greater need to be together? Stephanie agrees that buyers have responded to that as well in their purchasing habits. She says “Some families recognized they need more space after being cooped up for several months, while others realized they had too much space and loved the togetherness. Combining households with grandparents or adult children is a new trend, with limited inventory and prices climbing sharing the expenses just makes sense. Working parents have been left without childcare and need help with online learning. Having grandma and grandpa at home eases stresses and builds family bonds.”

This pause created by the pandemic gave an opportunity for people to consider what is truly important to them, and these socio-economic shifts in lifestyle have only intensified the need for accelerated, wellplanned urban intensification.

Sources https://www.hemson.com/wp-content/uploads/2020/08/HEMSON-GGH-Growth-Outlook-Report26Aug20.pdf https://files.ontario.ca/mmah-place-to-grow-office-consolidation-en-2020-08-28.pdf

Stephanie Winger: Real Estate Agent Vision Realty

Stephanie is an accomplished agent who brings experience, strategic vision and a personable approach to the home buying and selling process. Drawing from years of experience, Stephanie has built a reputation for her refreshingly friendly service and dedication.