Toronto land prices are pushing developers into the US market

Buying land in the city has tripled in price over the past five years

Nov.November 19, 2017 12:50 PM

(Credit: back photo by U.S. Air Force photo by Senior Airman Joshua R. M. Dewberry; front photo by The White House)

Land prices in one of the hottest housing markets have risen so much that developers are struggling to build at all in Toronto — and, when they do, having trouble finding buyers, so some are turning their eyes south to U.S. markets.

The push is coming Toronto land prices, which have tripled in the last five years, making the purchase of land about 50 percent of the cost of building a new home, compared to 2011 when land was about a third of the price, according to Bloomberg.

The soaring land costs are a result of new government rules on home construction and financing, but the main issue is a lack of land in the first place.

“There’s just no land for development,’’ said Malone Given Parsons’ Matthew Cory to Bloomberg. “And the pieces that are available are struggling to get to development because of lengthy and complicated policies.’’

The forecast looks grim with industry watchdogs predicting the supply of homes will only get worse in the years ahead. As a result, developers like Mattamy Homes, the largest home builder in Canada, are planning for greater expansion into new U.S. where about a third of the company’s business is already generated.

[Bloomberg] — E.K. Hudson

Related Articles

South Carolina town puts moratorium on development (Credit: iStock)

The high cost of low taxes: South Carolina town bans all development for 16 months

U.S. Rep. Alexandria Ocasio-Cortez and Sunnyside Yards (inset) (Credit: Getty Images and Wikipedia)

AOC resigns from Queens megadevelopment steering committee

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

The agreement was signed today at UBC’s New York Council offices in Manhattan by Nathan Blecharczyk, Airbnb co-founder, Chief Strategy Officer, and Frank Spencer, General Vice President of UBC.

Airbnb hammers out partnership with carpenters’ union

Fotis Dulos (AP Images/ Erik Trautmann)

Connecticut developer Fotis Dulos charged with murder

Pier 40 and Gov. Andrew Cuomo (Credit: Wikipedia and Getty Images)

Cuomo kills Pier 40 redevelopment plan

CW Realty’s Cheskie Weisz  and a rendering of 251 Front Street (Credit: CW Realty and Think Architecture and Design via New York YIMBY)

CW Realty plans luxury rental at controversial Vinegar Hill site

A rendering of Broadway Triangle and an aerial of Broadway Triangle (Credit: Magnusson Architecture via Department of City Planning and Google Maps)

Rabsky, Spencer land $70M refi for Broadway Triangle site