Each month, BILD’s reports on new home sales in the GTA — collected and compiled by the Altus Group — reveal how many new homes were sold, the average asking price and the remaining number of new homes in builders’ inventory.

This data provides those in the housing, real estate and development industries real-time insight on how government housing regulations, fiscal policy, economic conditions and consumer confidence influence the region’s housing market.

Year-end sales data for 2019 shows that GTA new home sales rallied from the 22-year low of 2018. Overall in 2019, there were 36,471 new homes sold in the GTA — up from the 24,855 new homes sold the previous year. In fact, 2018 recorded the lowest number of new home sales in the GTA since 1996.

Of the new homes sold last year, 26,948 were condominium apartments, including units in low, medium and highrise buildings, stacked townhouses and loft units. This was a 27 per cent increase from 2018, and 16 per cent above the 10-year average.

Single family homes — including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses) — accounted for 9,523 new home sales. This was a 157 per cent increase from 2018, but still 30 per cent below the 10-year average.

At first glance, it appears new home sales were solid for 2019. But rather that’s how it looks when the market recovers from the 22-year low of the previous year and new home sales remain 30 per cent below the 10-year average.

What we saw in 2019 was a release of pent-up demand from 2018. Consumer demand has not diminished. We have to accept that demand will continue to increase.

On average it takes 10 years to build a typical highrise project and 11 years to complete a lowrise project in the GTA. But new homes need to be built faster. Obstacles such as layers of bureaucracy, outdated zoning, and complex policies and procedures have resulted in a generational shortfall of housing. These obstacles have contributed to the increase in housing costs we’ve seen over the past decade.

Complicating the equation is the increasing demand for new housing as the GTA — the fastest growing region in North America — expands with the arrival of an estimated 11,5000 new residents each year. By 2041, our population is expected to hit 9.7 million people.

Last year, the Ontario government announced the Housing Supply Action Plan. It represented the first major step by any provincial government to address housing supply. As well, the proposed changes acknowledge governments’ role in affordability; land transfer taxes, HST, parkland fees and development charges collectively add $124,000 to the cost of an average new condo in the GTA and $222,000 to the cost of an average new single-family home.

This is not a time for small plans. The numbers don’t lie. This year, all levels of government and our industry must continue to work together and correct the GTA’s housing supply problem.

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David Wilkes is President and CEO of the Building Industry and Land Development Association (BILD) and a contributor for the Star. Follow him on Twitter: @bildgta