Ernest Doroszuk/Toronto Sun
This in the wake of the raft of housing measures Premier Kathleen Wynne’s government announced in April, including a 15% “Non-Resident Speculation Tax”, ostensibly aimed at improving housing affordability.
It’s difficult to say how foreign buyers ultimately impact on the cost of buying or renting a home in Canada’s biggest urban region, and it’s too soon to estimate the effects of the myriad of policy changes introduced.
But what we know is that the laws of supply and demand apply to housing, and it’s hard to believe a small percentage of buyers are responsible for the massive appreciation of housing prices in the GTA over the past decade.
Rather than focus on a small group of buyers, we should focus on ensuring government regulations don’t prevent the supply of new housing from meeting demand.
For generations, the Greater Golden Horseshoe area, which stretches from Oshawa in the east to Niagara Falls in the west, has drawn newcomers from across Ontario, Canada and the world, motivated by many factors (jobs, stability, high standard of living, etc.).
To serve a growing population, developers and homebuilders (who must project several years into the future when conceiving new housing projects) respond by building thousands of new units annually.
Continue to read on.Toronto Sun