"It is the third consecutive budget or fall economic statement in which projections have been revised downward, and Municipal Affairs and Housing Minister Rob Flack has recently appeared to back away from the 1.5 million homes goal. In the spring budget, the province expected to see 71,800 homes built this year already far off the pace needed to reach 1.5 million, but now it projects an even lower 64,300."
"Construction activity, particularly in condominiums, has slowed from a 2023 peak, the government wrote, though the downturn was partially offset by higher levels of purpose-built rental construction. Ontario home resales, meanwhile, are projected to decline eight per cent this year as economic uncertainty weighs on the market, before bouncing back by 10.2 per cent next year. The average home resale price is projected to decline 3.3 per cent this year and rise 2.8 per cent next year."
Ontario reduced its projections for new home construction for the third consecutive fiscal update, widening the gap from the 1.5 million homes target. The province now expects 64,300 new homes this year, down from a spring estimate of 71,800, and forecasts 70,200 in 2025, 79,600 in 2027 and 83,700 in 2028. Private-sector forecasters point to tariff-related uncertainty and higher material costs as constraints on homebuilding. Construction has slowed, especially in condominium development, partly offset by increased purpose-built rental construction. Home resales are projected to fall eight percent this year, and land transfer tax revenue projections are $576 million lower.
Read at www.cbc.ca
Unable to calculate read time
Collection
[
|
...
]