In Canada’s largest cities, construction of single-family homes is rapidly declining despite a boom in home construction, The Huffington Post reports.
Out of 32,400 housing starts forecasted in Toronto this year, only 7,700 will be single-family detached homes, compared to 10,700 in 2012.
“Demand for condominium apartments [is] expected to remain strong as affordability erosion in the low-rise market pushes buyers (especially first-time) further into the condominium market,” a report from CMHC said.
According to the Huffington Post, an erosion in affordability could mean that this year, the average house price in popular inner-city Toronto neighborhoods could hit $2 million.
A similar trend is happening in Vancouver and Montreal, though in both these cities, multifamily housing starts are also projected to decline.
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