The cost of new homes in the GTA continues to grow as prices of low-rise homes set a new record high in July. Meanwhile the price per square foot hit a record high in the high-rise market, the Building Industry and Land Development Association (BILD) has announced.
The average price of a new low-rise home in the GTA hit an unprecedented $806,391 in July, according to the RealNet New Home Price Index. Prices in the low-rise market, which includes detached and semi-detached homes as well as townhomes, has increased by 109 per cent in the last decade.
“In July 2005 the average price of a ground-related home in the GTA was $386,133. Today it is more than double that,” said BILD president and CEO Bryan Tuckey. “This means that many first-time buyers have been priced out of the low-rise market.”
The average price of a new high-rise home in the GTA was $446,398 in July, up 1 percent from this time last year. Prices for new condominiums have increased by 57 per cent since July 2005, when the average suite cost $284,598.
The price per square foot for high-rise homes reached a record-high $570 in July while average unit size fell to a record-low 783 square feet.
“The industry is using innovating architectural design to make new homes more affordable,” Tuckey explained. “By maximizing living space and reducing overall suite size, our members are able to keep prices within reach for many first-time buyers.”
The price gap between high-rise and low-rise homes has grown to $359,997, which BILD attributes to limited supply of new ground-related homes due to lack of development-ready, serviced land across the region.
“Homes are being purchased faster than they can be brought to market,” he said. “Sales have been strong but a lot of them are coming from older, unsold inventory because new project launches can’t satisfy demand.”
There were 13,259 low-rise homes sold across the GTA so far this year, while remaining inventory of low-rise homes fell to 4,550 – a new record low.
“Low-rise inventory has fallen below record low levels several times this year and will continue to do so until we have an adequate supply of serviced land designated for development.”