TORONTO — Half of Ontarians in the market to buy a home in the next two years say they are looking for a detached house, up 13 points from a year ago, shows new research from the Ontario Real Estate Association (OREA).
In Toronto, where supply of detached homes is at an all-time low, the demand is up 21 points from a year ago, with 50 per cent of buyers saying they are likely to buy this housing type, according to the Ontario Home Ownership Index, OREA's semi-annual consumer study conducted by Ipsos Reid.
"With limited supply of this housing type, it's becoming increasingly difficult to meet the demand," said Tim Hudak, OREA CEO. "Young families looking for more space, a backyard to play with their kids in, simply don't have enough options to choose from. Increasing the supply of single-family detached houses, as well as semis and townhouses, will give buyers more choice at affordable levels."
The Building Industry and Land Development Association (BILD) recently reported that housing supply has plummeted over the past decade. The lack of housing supply is a key driving factor for increasing prices of new single-family detached houses and highrise condos in the Greater Toronto Area.
"Demand for detached houses is up while supply is critically low — no wonder prices are rising so quickly," said Hudak. "We need more homes on the market; government should give careful consideration to policies that will increase supply. Home ownership is not a fad — it is the Canadian dream."
According to OREA's Ontario Home Ownership Index, eight out of 10 Ontarians consistently say that home ownership is important to them (79 per cent), real estate is a good investment (82 per cent) and it makes more sense to own rather than rent (81 per cent). "Long-term investment value" is Ontarians' top reason for buying a home (34 per cent).
Nineteen per cent of Ontarians said they were likely to buy a condo in the next two years, down seven per cent from a year ago, while 22 per cent of Torontonians were likely to buy a condo, a drop of 17 per cent from last year.
And 19 per cent of Ontario residents said they were likely to buy a semi-detached home in the next two years, down four per cent from 2015. Twenty-three per cent of Torontonians were likely to buy a semi, up three per cent.