Rarely in the history of Canada’s housing market have we seen anything quite like what Toronto has gone through in the last few years: soaring costs, unbelievable bidding wars and a ripple effect on the rental market that has produced national headlines.
While this has confused some industry experts, banks and homeowners, there were signs along the way and reasons as to why this happened. It’s not all bad news either.
Let’s review some of the reasons that Toronto has become the housing market that it is today.
Toronto is Canada’s Biggest Job Creator
People go where the jobs are and where industries are being built. Since 2009, Canada’s job market has been strong, exemplified by Toronto. Simply put, there’s no city in Canada that creates more jobs year over year than Toronto.
In the last few years alone, tech companies like Google and Slack have opened Toronto offices drawing the attention of millennials from across the country.
Efforts to make Toronto a World-class City are Paying off
Toronto’s so-called housing bubble has most likely been overblown and what the city has experienced is more the result of infrastructure being built to bring Toronto to the level of Chicago, New York City, Paris and other world-class metropolitan cities in the U.S. and Europe.
With space to build, successful arts and manufacturing sectors, a public transportation system, proven social programs, it’s no surprise that Toronto is spending more time in the global spotlight alongside some major cities.
There’s Money to be Made
It’s no surprise that Toronto’s housing market has boomed because investors pounced on its potential. With volatility in most markets, both housing and others, Toronto’s housing market has become a beacon of stability and a place for many people to put their money with little concern.
The strength of Toronto’s housing market didn’t happen in a vacuum and there’s no real end in sight. Even if it experiences dips along the way, it should continue its overall climb on the back of the city’s continual growth.
Mortgage Company of Canada is a mortgage investment corporation whose objective is to provide investors with an attractive risk-adjusted return by investing in mortgages secured by single family homes in the Greater Toronto Area. Our experienced management team employs an independent Board approved credit policy, follows rigorous underwriting analysis and leverages its third-party mortgage brokerage relationships as well as its affiliated mortgage brokerage for mortgage originations. Mortgage Company of Canada’s Board of Directors (“Board of Directors”) comprises a majority of independent members who provide a framework around best practices.
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