In June 2006, the average price of a new low-rise home in the Great Toronto Area was $393,398, and now 10 years later the average price has hit $887,543 according to BILD, the Building Industry and Land Development Association.
The term “low-rise homes” applies to townhomes, semi-detached and detached homes. Within the last year, the price of these homes increased from $785,800 to today’s high, a jump of over $100,000
Michelle Noble, the vice president of communications for BILD, said that, “The price of low-rise homes has grown exponentially as supply has dropped.”
In 2006, new homes in builders’ inventory totaled almost 30,000, more than half of which were low-rise homes. This year, there were 18,427 homes available, only 2,000 of which were low-rise homes. This is a near record low.
She continued, “Supply of new low-rise homes has decline dramatically in the last 10 years due to government policy and lack of available serviced land. Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching.”