With the holidays in full swing, people tend to take time off, unplug and unwind from the year in December.
However you chose to spend your days resting and recuperating last month — whether it was catching up on Netflix or enjoying midday naps — you may have overlooked a few important stories on Livabl.
In case you missed them, here are six housing market stories Livabl published in December that deserve a second read.
1. Prime Minister Justin Trudeau proposes housing market stabilization measures
During the September 2021 federal election, Prime Minister Justin Trudeau’s Liberal party campaigned on policies to exclude foreign ownership of non-recreational residential property, as well as a ban on blind bidding processes.
In a mandate letter addressed to Minister Ahmed Hussen, the minister of housing and diversity and inclusion, Trudeau outlined initiatives targeted at improving affordability and boosting supply, inclusive of the creation of the Fairness in Real Estate Action Plan.
The plan would review down payment requirements for investment properties while introducing an anti-flipping tax and intentions to prevent “renovictions.”
2. Gen Z adults are split on their prospects of single-family home ownership
The youngest generation of Canadian homebuyers are 50-50 on whether they’ll ever be able to own a single-family property.
A report from Sotheby’s International Realty Canada found that 75 per cent of Generation Z urban adults — those born between 1993 and 2011 — are likely to buy and own a primary residence in their lifetime. However, 50 per cent of Gen Z respondents reported that they’ve already moved on from their dream of owning a single-family home, mostly due to high purchasing costs.
Because of this barrier, Gen Z buyers have shifted their sights to more “realistic” and higher-density housing types, such as condos, attached homes and duplexes/triplexes.
3. The 2021 housing market summed up in four graphs
Last year saw the continuation of home buyers and sellers reevaluating what was important for them and their living situation. The 2021 housing market was also defined by recovering rental markets, growing mortgage debt and record-breaking sales levels.
Putting these trends into context, Point2Homes analyzed real estate-related searches in Google Trends and translated those results into four graphs. Last year’s internet searches highlight the mindset of renters, buyers and sellers from across the country and how the market influenced their decisions.
4. Mortgage stress test remains unchanged
Mid-month, the Office of the Superintendent of Financial Institutions (OSFI) announced there wouldn’t be any new changes for uninsured mortgages.
In a news release, the OSFI stated that the minimum qualifying rate for uninsured mortgages would remain at the greater of the mortgage contract rate plus 2 per cent or 5.25 per cent.
The federal agency noted that in light of increased household indebtedness and low interest rates, it is essential that “lenders test their borrowers to ensure that mortgages can continue to be paid during more adverse conditions.”
5. 79-storey tower slated for Yorkville’s Bloor Street West corridor
A prime chunk of land near Bloor and Bay streets is one of the latest sites in downtown Toronto to receive new development plans.
A rezoning application filed to the City on December 17th details the creation of a 79-storey high-rise with 1,118 residential units at 83-95 Bloor Street West. About 1,153 square metres would be designated as non-residential gross floor area, and 70,503 square metres for residential gross floor area. The site is currently occupied by retail and office uses.
No renderings or plans have been released publicly yet.
6. Canadian housing affordability drops to the worst levels in more than three decades
New findings from RBC show that housing affordability in Canada has fallen to its worst level in 31 years.
The bank’s housing affordability measure, a percentage of median pre-tax household income required to cover ownership costs, rose two percentage points during Q3-2021 to 47.5 per cent.
With the Bank of Canada expected to increase its overnight rate next spring, RBC predicted that affordability will continue to suffer during the next year.
