#1 REASON FOR EXPLOSIVE DEMAND IN TORONTO REAL ESTATEBy CondoWong Wednesday, October 16, 2019
The Toronto Real Estate Board just released the September 2019 Market Watch Report.
There is a 22% sales growth when compared to the same time last year.
New listings are down by 1.9% year-over-year.
For multiple months this year, supply fails to catch up with demand.
The average prices are up by an annual rate of 5.8%.
That’s all I’m going to say about the report because I think the numbers are boring.
We know the general trend continues to go up.
How about I share the #1 underlying reason for the continuous growth? That would be much more interesting, right?
Let me give you a number. (ie. 525,600)
What does this number mean to you?
That’s the number of minutes we all have in 1 year’s time.
Imagine adding 1 person to our country every minute.
Canada’s population increased by 531,497 in 1 year’s time, that means our population is growing by just over 1 person per minute.
This annual increase in the number of people is the highest ever in Canada’s history.
As of July 1, 2019, Canada’s population was estimated at 37.6 million.
Let’s compare our population growth rate for the past year with other G7 countries.
United Kingdom, 0.6%
United States, also 0.6%
Italy and Japan both recorded a population decline at -0.2%
Canada, take a guess?
1.4%. That’s more than double of the growth in the U.S. and U.K.
What is the driving force behind this sustained population growth in Canada?
The difference between births and deaths only accounted for 17.8% of the growth.
Work and study permit holders accounted for 29% of the growth.
This shows that Canada also has a very strong demand in our labour market.
There is 1 single force that is driving the remaining 53.2% of the growth.
Take a guess?
That’s right. Immigration.
We admitted over 300,000 immigrants into Canada over the past year.
Which provinces saw the strongest population growth?
Prince Edward Island, Ontario, Alberta and Quebec.
We believe that the Greater Toronto Area attracted a large portion of the population growth in Ontario because of its strong regional economy.
Those are the 4 unfair advantages for non-residents to invest in Toronto.
Population growth is the #1 underlying reason for the continuous growth in Toronto real estate.
It justifies the need for immediate and sustained action on housing supply.
This is also why I believe the demand for all types of housing in Toronto, both rental and ownership, will remain strong.
If you want to invest in Toronto real estate, you can schedule a call with me.
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