City’s economic boom plays a part
Toronto’s affordable housing crisis is an upshot of the supply and demand law at play: a growing housing demand and insufficient inventory are pushing property and rental prices out of reach for many.
The crux of the matter is that as the hub for many industries, Toronto and the GTA do and will continue to attract people from all over the country and the world in search of employment. The city is a magnet for job seekers, especially those looking for high-paying employment.
Toronto is a financial and industrial centre. It’s the banking and stock exchange centre of Canada, and the focal point for the country’s media, advertising, entertainment and fashion industries. As well, Toronto is a main site for big tech companies. Shopify, Microsoft, Opentext and Google, to name a few, have increased their operations in the GTA.
A recent Ryerson University study discovered that Toronto is the fastest-growing city in both Canada and the US. Its population increased by 77,000 new residents in 2018, more than any other North American city. Toronto has had a GDP growth rate of 2.4 per cent annually since 2009, outpacing the national average.
People coming to Toronto to work in the many high-profile industries operating here are often very well paid and are willing to pay top dollar for accommodations close to their work, hence the rise in property prices and rental fees. While affordable housing initiatives should help ease the crisis, the constant influx of new residents with deep pockets to the city means that the housing market will remain highly competitive.
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