The Toronto housing prices are mainly determined by the big things that happen in Canada’s economy. These include digitization, automation, rising prices of homes in the major cities, the price of fossil fuel and among others. Outlined here below are the factors affecting real estate market in Toronto and other cities in Canada.
Toronto and other cities in Canada have attracted many people because of their strong employment markets. Automation has contributed significantly to unemployment rates or rise in real wages. This has forced people to move to other areas where the housing prices are affordable. Additionally, machines are increasingly being used in building buildings or homes. This has, in turn, reduced the amount of money and time involved in construction.
With the use of the internet, people can now “e-commute” to work. This means that people can live in areas that are far from major employment zones such as Toronto. This has put downward pressure on the available properties. People can now shop online, and goods can be obtained from available warehouses to consumers. Companies can also use the internet to outsource labor from countries having cheap labor. This can contribute to employment in Canada. Additionally, the use of the internet has made it easier for immigrants to move to Canada. Most of these immigrants live in the immigrant clusters such as Toronto.
The demographic profile of Canada is different from the way it was two decades ago. Majority of Canadians are now aged between 15-20 eras. The Baby Boomers who are nearing 60 years are no longer the majority. There is a high likelihood of these people selling their properties. They also don’t carry out major renovations on their homes.
Parents who have few children don’t need large houses. Fewer children also mean that there are fewer jobs in child-care, day-care or education. This is another indication that there are fewer home-renters or home buyers entering the market.
Price of Commodities
The price of different comedies and energy has been on the rise for the last two decades. However, things have now changed since 2014, when the prices crashed. These prices have remained low up to date. Inexpensive commodities can decrease the pressure on home prices.
The major cities in Canada including Toronto and Vancouver have experienced an increase in their real estate markets. Some people have been priced out, and others will be priced out soon of those markets. It is projected that real estate markets will increase further in the coming years.