The Importance Of Demand In Toronto GTA

As the leasing amount and house rent goes up while there is stagnation in wages and salaries, affording the monthly rent becomes difficult leading to gentrification in the city.

Gentrification is a major reason for the increase in rent prices throughout New York City. Harlem rent prices have gone up over the past years because of new condominiums and businesses that are being built in neighborhoods. The displacement of residents leads to an increase of people becoming homeless in the city. According to the author, Ivan Pereira, “Harlem saw a 9.4 % average rent price increase during that same period from $2,191 last year to $ 2,397 in January” (Pereira 1). The change causes longtime residents to move out because of a variety of factors including unaffordability, pressure from property owners, diminishing or lack of stores that cater to them and many more. The more condominiums and business’s being built makes living

Responsible for the increase in the housing market are foreign buyer’s - purchasing in cash, as well as the provincial government. Thus, the government may implicate laws and regulation in order to stop this increase. Although there are multiple efforts being made by the government, their negative repercussions may be more severe. The implementation of “price caps” by the government will aid in lowering the house market. These price caps will asses the property on the basis of its size and features and will have a “max price” it can be listed for. Likewise, the government may further their efforts by Imposing a speculation tax on people who flip houses within a short period, perhaps within two or four years of purchase. The tax could apply to all homes or be limited to non-principal residences. These possible efforts will lead to the demise of the GTA housing market

South Parkdale is looked at to be one of the most gentrifying areas within Toronto. Many people are wanting to live closer to the inner city becoming more attractive to those with money to make housing choice’s in the downtown core (Slater, 2003). They have taken advantage of the rush of real estate forcing a lot of people to be displaced. Queen’s Hotel in South Parkdale has caused a lot of gentrification driven displacement pushing property value up within Parkdale (Truong, 2013). Many long-time

• Rents for each of the properties has rise between 10 to 18% in the last 12 months and is

It is worth noting the difference between gentrification and “incumbent upgrading” in which current residents improve the neighborhood’s housing value with no apparent population change (McDonald, 1986). Furthermore, McDonald stated that the mere increase in value of real estate in a neighborhood does not qualify as gentrification. This is due to the fact that the increase in value can be the result of inflation in the housing market on a national scale. There are many theories of the causes of gentrification. Some believe that the younger or wealthier people move to urban neighborhoods as a way to reconnect with the community while gaining more cultural awareness. There is also the theory of the real estate having a low price tag. The low cost of land attracts buyers who are interested in renovating the business for a large financial

Tenants who relocate, sick of repairs, or request more freedom/flexibility provide some contribution to the rental market's upswing. Because of this, rental home or apartment prices increase. The lucrative opportunity is luring many experienced and inexperienced people into this industry. Don't attempt to dive head first into this opportunity. Seek the help of this article and a Mississauga Real Estate professional about the ins and outs of the industry first.

Toronto is the largest condominium market in North America followed by Montreal, Calgary, and Vancouver along with Halifax and St. Johns. Up until 2013 the market had been growing and especially booming in Toronto. In 2013 this high condominium purchasing rate attracted the attention of the Bank of Canada, and the question was posed whether satisfying this high demand, including from foreigner’s side, was a good thing for the market. Following that, the banks became more “cautious” when lending funds for construction or to purchase a unit. Low interest rates were believed to be favouring the booming demand. An increase in interest rates was believed to be a serious threat, however the probability of that happening was perceived as low in

'Location efficient ' neighborhoods, and employment and recreational opportunities in walking and biking distances are attracting more and more people to reside in the downtown core. Studies show that, since 1976, the residential population has doubled, with more than 240000 people living in the Area and the ownership share has increased by almost two times since 1996 (City of Toronto. 2014b). Accordingly, the City 's housing market is dealing with more and more housing needs (CHBA, 2012; Landau, 2013). Also, Toronto Official Plan identifies the Area, as a place to accommodate significant population growth by 2041 (Ontario. Ministry of Finance, 2014). As a consequence, the value of land in the Area is extensively increasing and

Jeremiah Moss, in his article in NY Daily News, titled “The NYC we love is disappearing: It’s becoming a hollow city for hollow people”, wrote that “wherever the towers of big development rise, the rents rise with them”. 2 He declared that the median rent for vacant apartments is about 60% of median income. And for business spaces, the landlords are doubling, tripling, even octupling the rents or denying lease renewals. They preferred to leave the spaces vacant for months or years, waiting for the highest bidder with the very high rent fee, such as $40,000, $60,000, $80,000 a month. This caused small businesses to close down.

The rising of house prices in Canada is like the train which has gone off the rails. In Vancouver – the average home price has jumped almost 40 percent in 5 years (Dmitrieva, Apr 14, 2016), more to the point, houses which are purchased but uninhabited are increasing in Canada; because many rich foreigners try to make a profit from reselling house, but foreign buyers are nor the only reason for real estate problems in Canada. The real estate market’s regulation is ineffective and low interest rates of mortgage are the main causes of the housing market bubble in Canada. The overheating of real estate can be moderated by the practical regulation and effective forecasts from more datas.

When the rental price is artificially maintained at a low level, it will no longer represent the function of rationalizing consumption, and in this way more "lucky" people will be willing and able to occupy much larger areas than if the price could free variables.

My paper is about the recent situation and growth in the Hudson real estate market. I spoke with Kira Blair who works at Wells Fargo bank as a personal banker. Her impressions reflect what I’ve found in my literature research, which is firstly about the trend in real estate market. Kira said the trends of the rental market is that the need for lower rental for young people will continue to increase because younger people were unable to afford the mortgages when they enter the workforce for the first time. So without the funds to make a down payment or the credit to be approved for a mortgage, young people opted to rent and they may continue to rent in many years. Kira said that the demand for buying houses or apartments are not as much as

The world runs on the concept of supply and demand. Supply and demand are the key concepts in the economist theory. Supply is simply how much of a product that the market can make and offer to consumers for a certain price. The supply can depend on resources of the producer or how willing they are to produce it. While, demand is how much the consumers insist on paying for a product or service (cite website1). As I stated before, the world runs on this economic theory. Economics is not a concept limited to more advance societies such as the United States. In all countries economist are investigating the relationships between price and quantity in-regards-to both supply and demand, the demand curve, market demand and there variables, the supply curve, and shifts that occur.

Usually, if there is demand, there is also supply involved. The essential factor of the increasing and decreasing of demand and supply are normally depend on the price of the good. Hence, the law of demand and supply was