Housing affordability in Toronto would remain strained even in the event of a deep economic recession, a new Desjardins analysis has found.
“Our analysis underscores the extremely difficult starting position for both first‑time home buyers and policymakers seeking to improve housing affordability. Consequently, plans to boost the supply of affordable housing can’t fall short. It’s just not an option.” Still, the economists noted that such a fall in prices would bring the home-price-to-disposable-income level back to what it was in late 2015, when the ratio was "still-stretched" and prices began to surge in the GTA.“Compared to our base‑case economic forecast for Ontario, a 1990s‑style recession would result in net total provincial job losses approaching 500,000 by 2025.
“The sales price‑to‑disposable income ratio per working aged person would exceed its pandemic‑era peak by mid‑decade.”