In recent years, Toronto real estate has been considered one of the hottest luxury real estate markets in the world. Sellers, developers, and brokers enjoy the profitability of the industry, which explains why there’s an abundance of mansions and million-dollar condominium units in the GTA.
The same can’t be said for regular buyers, though. For regular, single-detached real estate properties, the demand has always been higher than the supply. This keeps the prices sky high and makes it difficult for a lot of people to buy a home within the metro.
Things got quite out of hand that the situation became a full-blown housing crisis. As a result of the sky-high property prices and the limited options within the GTA, a more vertical development took place.
While this helped meet the demands of the market partially, what they have to offer are still not enough. In many cases, the available offerings don’t meet the actual needs of the market.
According to a survey done by the Toronto Region Board of Trade, millennials don’t find most of the developments the right fit for their housing requirements. A lot of them only offer 1-bedroom condos while more and more first-time buyers in the city are looking for family housing.
A 1-bedroom won’t be a comfortable fit and a wise investment for a growing family. And with the price tag these units come with, they’re not the most practical buys for the young people who want to start a family soon.
What, then, are millennials looking for? The same survey mentioned above notes that there are not enough 2 to 3-bedroom condos available. These units can provide a good alternative to detached houses for growing families as they can already provide the privacy necessary in homes.
Not having enough of these types of properties makes it more complicated to end the housing crisis in Toronto. Unfortunately, developers find 1-bedroom units easier to sell, so not a lot of them are interested in offering a lot of bigger units. There’s still hope, though, as more developments have just been announced. With some luck, and if developers have listened to the details of the market’s demands, they’ll get around to offering more 2 or 3-bedroom units.
There’s no more space for new homes in the Greater Toronto Area, so finding a single-detached property can be impossible. However, with the growth of the tiny home movement and a bit of ingenuity, laneway housing is now an alternative being explored as a solution to the city’s housing crisis.
Some say that these ground-oriented housing units actually started in Toronto in 2006 but didn’t really take off. Privacy concerns and issues with the delivery of public services made the local government decide against allowing such structures. Recently, however, the city has been more open to it as all the concerns can be solved by the same arrangements rentals use.
What exactly are laneway housing units? As the name suggests, laneway houses are those homes built in laneways and backyards. They’re practically tiny homes. They address privacy issues as they’re separate from the main house and can use the backyard as a buffer between the two properties.
These properties are seen as excellent solutions to the rental market shortage. It can also help homeowners afford their homes with the extra income that their rentals can bring in.
Solving the Current Housing Crisis
Toronto may have the hottest real estate market right now but it could need some improvement if it doesn’t want to lose its momentum. These two housing options seem to be excellent solutions so the city can be more accessible to buyers and renters.