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The Toronto and Vancouver housing markets

CIBC World Markets recently published this report by Benjamin Tal talking about the Toronto and Vancouver housing markets. Here is an excerpt:

“But when the fog
clears it will become evident that the
long-term trajectory of the market will
show even tighter conditions. The supply
issues facing centres such as Toronto and
Vancouver will worsen and demand is
routinely understated. Short of a significant
change in housing policies and preferences,
there is nothing in the pipeline to alleviate
the pressure.”

It’s a good read. Worth your time.

One stat that stood out and directly relates to some of the topics that we frequently talk about on this blog is the shift in Toronto from low-rise to high-rise housing.

In the report there’s a chart showing the “change in [housing unit] completions” in 2016 as compared to 2000. The switch from low-rise to high-rise is almost 1:1 in Toronto. In other words, we substituted high-rise housing for low-rise housing. 

I think this speaks volumes about the fundamentals underpinning the Toronto condo/apartment market. We are continuing to build up because it is the future of housing in this city.

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