Housing supply continues to be a hot-button issue in Toronto and the GTA, despite a cooling housing market. To address high rental and listing prices, the city of Toronto recently announced a plan to develop eleven sites owned by the city.
The plan is welcomed by many as the land will not be sold to the highest bidder – helping to lower development prices and ensuring that high density condos will get built.
Roughly 10,000 units will be built and two thirds of these (6,600) will be purpose built-rental units. Around 3,700 of these units are required to meet affordability levels specified by the city.
The rental prices for the affordable units are expected to save renters roughly $275 per month.
Toronto’s approach shows the city is approaching the housing supply issue differently than the past. Apparently, the status quo approach is not sufficient to address the GTA’s housing problems. Hopefully this new approach will be successful.
But 10,000 unit plan doesn’t have support from everyone.
Some commentators have raised the issue that the development of the Toronto sites will decrease parking spaces for commuters coming into the city. Some parking stock would inevitably be lost.
As we know from the Glen Abbey development proposal in Oakville, there are always trade-offs when it comes to development. However, converting parking lots into a supply of affordable housing stock seems like a good idea.