A new report from RBC and the Pembina Institute states that a lack of affordable single-family homes in the Greater Toronto Area has prompted many home buyers to look to condominiums.

The Priced Out report says that there is not a shortage of land on which to build single-family homes in the GTA; rather, the land is inconveniently located. The vast majority of homebuyers want to live in established neighbourhoods that are both walkable and transit-friendly, situated close to amenities and offer shorter commutes.

Single-family detached homes only accounted for 25 per cent of the city’s housing stock in 2011, while multi-storey dwellings reached 41 per cent.

“Demand for single-family homes in established GTA neighbourhoods has outstripped supply, which is driving up prices in these areas,” says Cherise Burda, Ontario policy director at the Pembina Institute. “Many home buyers are faced with a choice between a condo in a walkable and transit-accessible neighbourhood, or a single-family home located in car-dependent location.”

The report goes on to say that an increase in so-called “location-efficient living” would benefit the economy and the environment, and would also be in line Ontario’s goals surrounding both land use and transit planning.

RBC and Pembina’s related 2012 report, the Home Location Study, indicated that more than 80 per cent of GTA residents would sacrifice a large house with a yard in order to live in a location-efficient neighbourhood. This, combined with a lack of affordability, has encouraged home buyers to examine multi-unit dwellings, such as condos, as reasonable alternatives to single-family homes.