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Part of Statistics Canada released data regarding the housing market in Ontario.

What could the persistence of unsold condo units mean for Olivia Chow?

Possible What happens if… A possibility worth considering, not a forecast.

Housing market stagnation may challenge Toronto's housing goals. The persistence of unsold units and the maintenance of strict lending criteria by institutions like Meridian Credit Union are contributing to a severe housing market slowdown in the Toronto region. Developers are shelving projects because they cannot meet the 70-per-cent sales threshold required for construction financing, leading to a high inventory of 5,127 newly-built unsold units. This lack of new supply and the downward trend in condo prices and construction starts place significant pressure on the municipal governance and housing affordability priorities overseen by Olivia Chow.

Reported by 1 independent outlet Written 6 hours ago
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Mild negative
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How it reaches Olivia Chow

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The facts so far

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  • Lenders typically require 70 per cent of a project’s units to be sold before providing financing.theglobeandmail.com
  • Currently, there are 5,127 newly-built condo units in the Toronto and Hamilton region that are unsold.theglobeandmail.com
  • The typical condo price in the Toronto region is down 7 per cent in September from a year ago.theglobeandmail.com
  • There were 4,150 condo unit construction starts in the Toronto region in the first six months of the year.theglobeandmail.com

Why it matters

The housing market downturn poses a significant challenge to the city's ability to meet housing goals and maintain affordability. The lack of new construction, driven by financing hurdles, means that the supply of new homes is severely constrained, which is a critical issue for municipal planning and policy.

This situation is part of a broader trend where individual investors, who previously drove preconstruction purchases, are no longer interested in the market. Developers are now struggling to rely on buyers who plan to live in the units, and the overall construction pace is at its lowest level since 1998.

What we don't know yet

  • Will lenders lower the 70-per-cent sales threshold to stimulate construction?
  • How will the city address the growing inventory of unsold units?

What would change this answer

Lenders significantly lower the sales threshold requirementNew construction could accelerate, easing the supply constraints and mitigating the negative pressure on municipal housing policy.
Condo prices continue to fall and construction starts remain lowThe housing market stagnation will deepen, requiring more aggressive municipal intervention to address supply shortages.

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The full eventOntario Condo Lending Remains Strict Despite Market Downturn Everything aboutOlivia Chow

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.