The number of single-family homes listed for sale in major metropolitan areas across the country has fallen precipitously in recent years. In the Greater Toronto Area, listings have fallen 52 per cent compared to last year and are down a stunning 77 per cent from 2017 levels. In Vancouver, it’s a similar story, with inventory down by nearly one-third compared to last year and by over half since 2018.

While excess demand and speculation are no doubt contributing factors to this decline, the main driver appears to be a shortfall in new construction in the past decade at a time when population growth was exceptionally strong. From the 1970s until the 2000s, population growth averaged about 3.1 million per decade while new single-family completions averaged just under 1.3 million. But in the 10 years from 2010 to 2019, population growth surged to four million, while new completions fell to less than 1.1 million. Until Canada figures out how to right this imbalance, we can expect single-family homes to be coveted assets in major markets across the country.

macleans.ca