TRREB: Focus on Expanding Housing Supply, Not Another Investor Tax

This article was submitted by Kevin Crigger, President, Toronto Regional Real Estate Board

Housing affordability is one of the most significant challenges facing Toronto and the entire region. Governments at all levels have started making this issue a priority, thanks in part to the numerous public calls for action made by the Toronto Regional Real Estate Board (TRREB). We are thankful for this, but it’s essential that governments get the solutions right so that we don’t create new or worse challenges.

READ: “It’s the Wild West Here in Toronto”: City Councillor Calls for Speculation Tax

Recently, City of Toronto Councillor Mike Colle publicly indicated his intention to ask City Council to make a formal request for the provincial government to implement another investor tax, referred to as a “speculation tax”, that would be charged on the sale of non-principal residence homes. This is a bad idea for the following reasons:

Experts, including TRREB, agree that the current affordability challenges are largely a result of an inadequate supply of housing available for sale and rent, and as such, policies aimed at the demand side of the market will not have any sustainable long-term benefits;
Discouraging small scale investor-owned housing also means discouraging the creation of rental housing supply, which will drive up rents (current average rent for a one-bedroom condominium apartment, in Toronto, is $2080 per month, and $2,885 per month for a two-bedroom condo apartment); and
Past experience with the provincial Speculation Tax in 1974 indicates that such a tax could have ripple effects that would negatively impact not just investor-owned homes, but also the value and equity of other home-owners.

The real solution to housing affordability issues is to ensure adequate supply of homes for sale and rent. From the perspective of the City of Toronto, the best option would be for City Council to accelerate implementation of its “Expanding Housing Options in Neighbourhoods” initiative, which aims to facilitate a greater diversity and number of housing units in existing neighbourhoods.

TRREB is encouraged that governments are taking this issue seriously, but we urge caution to make sure that policy actions are targeted at the actual causes and do not have unintended consequences.

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TRREB: Focus on Expanding Housing Supply, Not Another Investor Tax

Toronto Regional Real Estate Board President Kevin Crigger rebukes City of Toronto Councillor Mike Colle's call for another investor tax.

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The owner of the Brantford property, 111 Sherwood Investments Inc., was placed under receivership earlier this month at the request of NHE Capital Corp.

The project is being developed by Earl Huntley Limited Partnership and the application just hit the City's desk last week.

The new Clinical Support and Research Centre (CSRC) will be directly adjacent to the new St. Paul's Hospital at 1002 Station Street.

Hart Buck and Jennifer Darling of Colliers have handled numerous court-ordered sales in Metro Vancouver, especially in the past year.

After unveiling the BC Builds program in February, the Province announced the first 8 development sites being made available through the program on Monday.

According to the BMO Real Financial Progress Index, a huge number of aspiring homeowners are waiting for interest rates to drop before entering the market.

Canada’s cottage country made headlines this week thanks to capital gains tax hikes, but – all things considered – it may not be as big of a deal as it's being made out to seem.