Toronto land prices are pushing developers into the US market

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

New York Weekend Edition /
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

arrow_forward_ios
D&F Development Group’s Peter Florey and the development site at the northwest corner of Pulaski and Elwood Roads in East Northport (D&F Development Group, Google Maps)
Four decades in making, East Northport project clears key hurdle
Four decades in making, East Northport project clears key hurdle
From left: Century Development's Group’s George Xu and City/Rybak Development’s Sergey Rybak with 78-29 Austin St./11-36 45 Road
Rybak, Century file to build Queens multifamily projects
Rybak, Century file to build Queens multifamily projects
ZappiCo's Jim Zappi and Pocantico Lake (ZappiCo Real Estate Development, Google Maps)
Developer wants 29 waterfront homes; Nimbys want none
Developer wants 29 waterfront homes; Nimbys want none
Miki Naftali with 215 West 84th Street (Getty, Corcoran)
Naftali takes hit in battle with UWS holdout
Naftali takes hit in battle with UWS holdout
CW Realty's Cheskie Weisz and an aerial of the development site at 296 4th Avenue, 288 4th Avenue, 21 Denton Place (CW Realty, Google Maps)
Cheskie Weisz plans 200 Gowanus apartments
Cheskie Weisz plans 200 Gowanus apartments
Boston Properties CEO Owen Thomas and 343 Madison Avenue (Boston Properties, Getty Images)
Boston Properties plans 1M sf tower at ex-MTA HQ
Boston Properties plans 1M sf tower at ex-MTA HQ
1591 Alps Road in Wayne, NJ and March Associates Construction president Louis March (Google Maps, Getty, March Associates)
From funeral home to strip mall
From funeral home to strip mall
 SL Green’s Marc Holliday with 450 Park Avenue  (Taconic Partners, SL Green)
TRD Pro: Here are NYC’s biggest offices sales of Q2
TRD Pro: Here are NYC’s biggest offices sales of Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...