The logic-defying and alarming increases in Toronto’s housing prices have affected us in Weston to some extent. The boom is largely taking place outside our borders. While we still live in an affordable area, interestingly the net effect of the current market is lower property taxes for us. This is because higher assessments in other parts of the city mean that those residents are taking a larger share of the total assessment. That’s the good news.
The bad news is that housing prices (and rents) are rising at an unsustainable rate. What are we being told about the rise in housing prices? The big lie is that it’s simply a lack of supply and that more housing is needed. Based on this lie, there are proposals to eat into Toronto’s Green Belt and put more housing there.
A new report issued this week from the Ryerson’s City Building Institute tackles the housing shortage theory and disproves it. While there is enough housing for residents, the seeming shortage is likely caused by money looking for a safe haven in Canada. According to the report, it’s hard to trace foreign money that’s causing the boom but unless we do something about money flooding our city (such as a foreign buyers’ tax or a progressive property surtax), a lot of (especially) young people will be putting themselves at risk, saddled with an impossible debt. This could trigger a financial crisis, once the bubble inevitably bursts causing even more turmoil.
Over to you Province of Ontario.