GTA new home inventory dips to two-year low
February 4, 2021
Photo credit: Brookfield Properties
A strong housing market in Greater Toronto Area (GTA) has driven the inventory of new homes to a two-year low, according to the Building and Land Development Association (BILD).
BILD data shows that 37,669 new homes were sold across the GTA in 2020—up 5 per cent from 2019, and 2 per cent higher than the 10-year average.
Increasing sales, combined with COVID-19-related restrictions which have slowed construction, mean the supply of new housing is getting even tighter, said BILD president and CEO David Wilkes.
“We’ve had a shortfall for at least a decade, and this has made it much tighter. Normally, we’d have 9 to 12 months of inventory available,” Wilkes said. “But right now, it’s down to three or four months.”
Total new home remaining inventory across the GTA fell to 13,171 units in December 2020, according to a BILD and Altus Group study. That’s the lowest level since March 2018.
Demand for new homes in the GTA has been very strong during the pandemic. Wilkes suggested there are two key reasons: Some people have been able to save up more money (due to travel and social restrictions) and people working from home are looking for increased space and comfort.
“People who have still been working haven’t been able to spend money on a lot of the things they normally do, so they’ve spent it on housing,” Wilkes said.