According to new research from the Ontario Real Estate Association (OREA), half of Ontarians looking to buy a home within the next two years say they are looking for a detached house, up 13 per cent from last year. In Toronto, where supply of detached homes is at an all-time low, demand for detached homes has climbed 21 points year-over-year to 50 per cent of buyers, says OREA’s Ontario Home Ownership Index, the semi-annual consumer study conducted by Ipsos Reid.
“With limited supply of this housing hype, it’s becoming increasingly difficult to meet the demand,” said Tim Hudak, OREA CEO, in a press release. “Young families looking for more space, a backyard to play with their kids in, simply don’t have enough options to choose from. Increasing the supply of single-family detached houses, as well as semis and townhouses, will give buyers more choice at affordable levels.”
The Building Industry and Land Development Association (BILD) recently revealed that housing supply has declined considerably over the past decade. The lack of housing supply is a key factor for the growing prices of new single-family detached homes and high-rise condos in the Greater Toronto Area (GTA).
“Demand for detached houses is up while supply is critically low – no wonder prices are rising so quickly,” added Hudak. “We need more homes on the market; government should give careful consideration to policies that will increase supply. Home ownership is not a fad – it is the Canadian dream.”
Ontarians are now less likely to want a condominium apartment, as the survey found that only 19 per cent of home buyers are likely to buy a condo in the next two years, which is a seven per cent decline from one year ago. Meanwhile, Torontonians are more likely to buy a condominium apartment in the next two years (22 per cent), but this figure is a 17 per cent drop compared to one year ago.
According to OREA’s Ontario Home Ownership Index, 79 per cent of Ontario residents consistently say that home ownership is important to them; 82 per cent say that real estate is a good investment; and 81 per cent say it makes more sense to own a home rather than rent. As for Ontarians’ top reason for buying a home, 34 per cent say it is because of long-term investment value.