Taking action: Taxation, supply and growth

How can we keep up with the Greater Toronto Area’s (GTA) constant evolution and ever-changing needs? It is imperative that we continuously search for solutions that adequately support a growing population, existing infrastructure and future planning.

Revaluating the approach to addressing housing affordability challenges is essential to developing a more stable and sustainable housing action plan. TRREB’s 2024 Market Outlook & 2023 Year in Review report and interactive digital digest provides industry insights and forecasts for what’s in store for the GTA real estate market. Readers will discover new research on the social implications of unaffordability and what’s required to adequately prepare for a rising population.

TRREB CEO John DiMichele states that “building more affordable housing begins with identifying the obstacles that are holding us back. However, band-aid solutions often result in larger issues than the problems they are attempting to solve. Simply put, taxation and fees on housing won’t help the affordability crisis our region is facing. Land transfer taxes act as a barrier for homeowners who want to relocate, and increased taxation sidelines would-be first-time homebuyers from entering the market at all.”

Turning to the market outlook, the direction of mortgage rates is key to where the housing market is headed in GTA.

2024 Market Outlook

• Home sales will reach the 77,000 mark in 2024, marking a substantial improvement compared to the less than 66,000 transactions in 2023.
• With sales accounting for a greater share of listings in 2024, the average selling price will grow by almost four per cent to $1.17 million. This will be the second highest mark on record, but still below the 2022 peak.

Last year, high mortgage rates and affordability issues moved some buyers to the sidelines.

2023 Year in Review

• 65,982 home sales.
• 142,233 new listings.
• An average price of $1.12 million for all home types.

For videos, infographics and to read more about the need for housing supply with rising immigration, the impact of the housing crisis on social value, the trends for new homes and condos, and an in-depth look at the commercial market, you can explore the digital digest and report at trreb.ca.