Here's an interesting figure from the Missing Middle Initiative showing the change in population of 0-4 year olds in Southern Ontario between 2016 and 2021:
Here's an interesting figure from the Missing Middle Initiative showing the change in population of 0-4 year olds in Southern Ontario between 2016 and 2021:
Here's an interesting figure from the Missing Middle Initiative showing the change in population of 0-4 year olds in Southern Ontario between 2016 and 2021:
What this shows is that the population of young children declined in the Greater Toronto Area and in Ottawa, but increased dramatically in areas further out, such as in Lanark County (outside of Ottawa) and Oxford County (between London and Hamilton). If you know what home prices are like in Southern Ontario, then this probably makes intuitive sense to you. Families are, as the old saying goes, "driving until they qualify."
But let's look at the data more closely. What the Missing Middle uncovered was that the metric most highly correlated with the population growth of children under the age of 5 was the increase in the supply of housing with three or more bedrooms. More specifically, though, it was highly correlated with an increase in the number of larger owner-occupied homes. Rental housing did not have the same correlation.
They go on to remind us that correlation is not causation, which is true. But regardless, there's a clear recipe here: If cities want to become more family-friendly, house more young children, and not lose them to exurban areas, then they need to figure out a way to unlock more 3-bedroom homes at price points that more families can afford.
Note: As is typical on this blog, I am using the term home to include all housing types, not just single-family housing. A home is not a housing type. It is simply a place where people, families, and households live permanently. Associating the term home with only single-family housing creates a cultural bias that I believe is suboptimal for cities.
The Greater Toronto and Hamilton Area is expected to see 6,821 new rental homes completed this year. This is a "multi-decade high", according to Urbanation's latest rental report. Indeed, you need to go back to the 1970s to get rental supply figures of this magnitude.
A big part of this has to do with the fact that we are now taxing rental housing less. Toward the end of last year, the federal government removed their portion of the HST on new rental housing and, then in November, the province of Ontario followed with theirs.
This was "a big first step" for the industry, according to leading apartment developers like Fitzrovia.
But there's another reason that many developers are now looking to purpose-built rentals: fewer people are buying new condominiums. And if you can't presell condos, well then you're going to need to find another path forward for your land.
However, flipping over to rental is not necessarily a panacea. The margins are generally razor thin (+/- 50 bps). It requires more and different capital (typically). And you need to believe in some fairly non-consensus assumptions (high rent growth, low cap rates, etc.).
It'll be interesting to see how many developers are able to successfully flip over to rental and how sustained this rental supply number will be.
What this shows is that the population of young children declined in the Greater Toronto Area and in Ottawa, but increased dramatically in areas further out, such as in Lanark County (outside of Ottawa) and Oxford County (between London and Hamilton). If you know what home prices are like in Southern Ontario, then this probably makes intuitive sense to you. Families are, as the old saying goes, "driving until they qualify."
But let's look at the data more closely. What the Missing Middle uncovered was that the metric most highly correlated with the population growth of children under the age of 5 was the increase in the supply of housing with three or more bedrooms. More specifically, though, it was highly correlated with an increase in the number of larger owner-occupied homes. Rental housing did not have the same correlation.
They go on to remind us that correlation is not causation, which is true. But regardless, there's a clear recipe here: If cities want to become more family-friendly, house more young children, and not lose them to exurban areas, then they need to figure out a way to unlock more 3-bedroom homes at price points that more families can afford.
Note: As is typical on this blog, I am using the term home to include all housing types, not just single-family housing. A home is not a housing type. It is simply a place where people, families, and households live permanently. Associating the term home with only single-family housing creates a cultural bias that I believe is suboptimal for cities.
The Greater Toronto and Hamilton Area is expected to see 6,821 new rental homes completed this year. This is a "multi-decade high", according to Urbanation's latest rental report. Indeed, you need to go back to the 1970s to get rental supply figures of this magnitude.
A big part of this has to do with the fact that we are now taxing rental housing less. Toward the end of last year, the federal government removed their portion of the HST on new rental housing and, then in November, the province of Ontario followed with theirs.
This was "a big first step" for the industry, according to leading apartment developers like Fitzrovia.
But there's another reason that many developers are now looking to purpose-built rentals: fewer people are buying new condominiums. And if you can't presell condos, well then you're going to need to find another path forward for your land.
However, flipping over to rental is not necessarily a panacea. The margins are generally razor thin (+/- 50 bps). It requires more and different capital (typically). And you need to believe in some fairly non-consensus assumptions (high rent growth, low cap rates, etc.).
It'll be interesting to see how many developers are able to successfully flip over to rental and how sustained this rental supply number will be.
It is based on recent population estimates from Statistics Canada, and what it is saying is that the Greater Toronto Area grew by 233,000 people during the 12 months ending July 1, 2023. If you include Hamilton, this number increases to 246,000. And if you include the entire Greater Golden Horseshoe, it increases to 340,000.
This is significantly more population growth compared to any of the six preceding years. And assuming this 2021 population estimate of about 9.8 million people is more or less correct, it represents an almost 3.5% growth rate. That's remarkable. It's also happening at a time when housing starts are declining.
It is based on recent population estimates from Statistics Canada, and what it is saying is that the Greater Toronto Area grew by 233,000 people during the 12 months ending July 1, 2023. If you include Hamilton, this number increases to 246,000. And if you include the entire Greater Golden Horseshoe, it increases to 340,000.
This is significantly more population growth compared to any of the six preceding years. And assuming this 2021 population estimate of about 9.8 million people is more or less correct, it represents an almost 3.5% growth rate. That's remarkable. It's also happening at a time when housing starts are declining.
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