Do you want content like this delivered to your inbox?

Why You Can't Afford a House

Scott Robinson

With just under 3 decades as a Real Estate Broker, Scott offers you expertise in virtually all venues of real estate...

With just under 3 decades as a Real Estate Broker, Scott offers you expertise in virtually all venues of real estate...

Feb 22 3 minutes read

Report blames Ontario's 2006 growth plan for soaring house prices


"The Ontario government’s 2006 growth plan for residential land development has spurred soaring increases in house prices in the Toronto region by limiting construction of new low-rise family homes, according to a report to be released Tuesday.

While the number of housing units built in the Greater Toronto Area over the past decade has roughly tracked the increase in population in the region, there has been “a marked mismatch” between the types of units completed and the types demanded, according to the report from the Centre for Urban Research and Land Development at Ryerson University in Toronto.

Demand for low-rise homes – especially detached homes – has not been matched by new supply, while the supply of condominium units has soared, the report says. The result has been major price inflation in all types of “ground-level” homes, including townhouses, semi-detached, and detached homes.

Frank Clayton, a senior research fellow at the Ryerson research centre, said soaring prices in recent years can be directly traced to the new development policy adopted by the province’s Liberal government in 2006 for the “Golden Horseshoe” region around Toronto.

The growth plan was aimed at encouraging denser development in the Toronto area and reducing the environmental impact of urban sprawl, but Dr. Clayton argues it has had the unintended consequence of driving prices higher by creating scarcity.

He said the province’s policy assumed more people would be willing to live in high-rise developments if they were built in transit-accessible areas, even though forecasts at the time suggested a large majority of housing would still need to be ground-level family homes.

“It’s one thing to pursue an environmental objective on something, but don’t deny you’re having an impact on house prices, and that’s what they did,” Dr. Clayton said in an interview...."  READ MORE

We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info

Terms of Use

This website is operated by Royal LePage Royal City Realty/Michael Christie, REALTOR®, a Salesperson who is a member of The Canadian Real Estate Association (CREA). The content on this website is owned or controlled by CREA. By accessing this website, the user agrees to be bound by these terms of use as amended from time to time, and agrees that these terms of use constitute a binding contract between the user, Royal LePage Royal City Realty/Michael Christie, REALTOR®, and CREA.


The content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other reproduction, distribution or use of the content, in whole or in part, is specifically prohibited. Prohibited uses include commercial use, “screen scraping”, “database scraping”, and any other activity intended to collect, store, reorganize or manipulate the content of this website.


REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules, and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the professional real estate services provided by members of CREA.

Liability and Warranty Disclaimer

The information contained on this website is based in whole or in part on information that is provided by members of CREA, who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members, and assumes no responsibility for its completeness or accuracy.


Royal LePage Royal City Realty/Michael Christie, REALTOR® may at any time amend these Terms of Use by updating this posting. All users of this site are bound by these amendments should they wish to continue accessing the website, and should therefore periodically visit this page to review any and all such amendments.