Canada’s housing boom is being dragged down by Ontario, where steep declines in new builds are threatening to worsen the affordability crisis, according to a new analysis from the Royal Bank of Canada (RBC).
While construction has surged in much of Canada, RBC’s report draws on information from the Canada Mortgage and Housing Corporation (CMHC) to conclude that Ontario is dragging down the nation’s numbers due to a sharp drop in new builds in the Greater Toronto Area (GTA).
“While homebuilders and municipalities are keen to respond, factors like the high development and building costs in Ontario, and substantial inventory are weighing on the initiation of new projects,” reads the Aug. 20 report by RBC economist Robert Hogue. “This raises concern about whether future housing stock can meet demand.”…