As supply of ground-oriented homes in the GTA drops to record low levels as a result of intensification, single-family home prices hit new highs each month: $887,543 was the average lowrise index price in June, according to Altus Group.

Younger buyers are coming to the realization that the dream of owning a detached house, as their parents did more than two decades ago, is likely to remain but a dream, with the price of ground-oriented housing in the GTA increasing at double-digit percentage rates year-over-year.

On the flip side, those who do own houses are seeing incredible wealth being created. If a homeowner were to compare value gains earned via an RRSP investment versus the value gained by their home over the past decade, the house would be the top performer. The TSX was down 3 per cent year over year as of June 30, while the average price of a detached house in the GTA increased 19.9 per cent to $979,445 and $1,259,486 in the city of Toronto, according to the Toronto Real Estate Board.

New and resale housing prices have been rising at double-digit rates over the last two years and are likely to continue to do so over the next decade, driven by three main factors: intensification, low interest rates and strong demand.

Intensification is here to stay and things will likely be getting more intense. Earlier this year the province proposed amendments to Ontario’s growth plan requiring 60 per cent of new residential development to be within existing built-up areas of a municipality (up from 40 per cent). If this comes to pass, the dearth of detached homes seen today will be even more profound a decade from now.

Interest rates are unlikely to be rising anytime soon as domestic and global economies struggle to achieve growth and new technologies add capacity to the economy at a record pace, likely causing more deflation than inflation.

And demand for ground-oriented housing won’t wane. Most baby boomers are reluctant to leave their houses and raising families in detached homes is a long-standing tradition in North America.

Those homeowners who have been watching the value of their investment skyrocket each month may well be tempted to begin tapping into some of that accumulated wealth by borrowing against their home with either a larger mortgage or a home line of credit (both in ample supply these days).

But caution is urged here. While values are likely to appreciate, a house is not an ATM. Loans eventually need to be paid back.

George Carras is the president of RealStrategies Inc. and the founder of RealNet Canada Inc. (now part of Altus Group). His column appears in New in Homes & Condos once a month. For more information, visit realstrategies.ca