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

From left: The Blau and Berg Company's Karine Blanc, TD and Partners' Nana Duncan and Lemor Development Group's Kenneth Morrison (Credit: Blauberg, TD+Partners and Lemor)

Black developers say partnerships aren’t always equal

85 4th Avenue in Brooklyn (Credit: Google Maps)

New details of Boerum Hill’s next big project unveiled

TF Cornerstone president Frederick Elghanayan and 595 Dean Street (Credit: CityRealty, Google Maps)

TF Cornerstone’s Prospect Heights two-tower project unveiled

Assemblyman David Chiu and Gov. Gavin Newsom (Credit: Wikipedia and iStock)

California passes landmark rent control law

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation

Chicago’s top 5 general contractor firms were approved to build over 9 million square feet of new development

The construction giants catching a Windy City windfall

David Marx of MDG Real Estate and the site at 71-05 Parsons Boulevard in Queens (Credit: Google Images and iStock)

Here’s a weird one: David Marx plans towers at Queens site he bought from his own company

Resi scorecard: Brooklyn and Queens condo inventory through June 2019

Resi scorecard: Brooklyn and Queens condo inventory through June 2019