Highrise Homes to Dominate Toronto Housing Starts in 2015

TORONTO, ONTARIO--(Marketwired - Nov. 19, 2014) - Sales and starts activity will increase in the Toronto housing market next year before moderating in 2016, according to Dana Senagama, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for the Greater Toronto Area. CMHC presented its latest forecast for the Toronto Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Conference.

At this year's conference, entitled 'What Will Drive the Market?', CMHC market analysts explained how demographic trends will impact the housing industry in Toronto and provided an in-depth housing market forecast for 2015.

"Rising prices and lack of land for low-density construction in core urban areas will continue to push sales and new construction towards more high-density housing. An increasing desire among millennial and baby boomer populations to live an urban life will also fuel higher demand for condominium apartments over the next two years," said Dana Senagama.

Highlights from today's conference include:

• Total housing starts will increase next year before moderating in 2016.
  
  
• Improving labour markets will support stronger existing home sales in 2015 before rising mortgage carrying costs dampen sales in 2016.
  
  
• A slight increase in new listings will keep the resale market balanced.
  
  
• Rising supply of condominium apartments for rent will exert some upward pressure on the average vacancy rate but it will remain low by historical standards.
  
  

"Growing economic momentum will support stronger activity in Ontario's housing market in 2015. However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Resale markets surrounding the Greater Toronto Area, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

Follow CMHC on Twitter @CMHC_ca

#HOCTO