Toronto’s action plan to solve housing crisis and boost economy

It is also a direct response to the growing affordability gap that has made homeownership increasingly difficult for many residents. The report noted that home prices have surged by 20% since 2019, while income growth has been stagnant.

Building more affordable homes, faster

One of the most urgent issues Toronto faces is the rising cost of housing. According to the report, home prices have soared by 20% since 2019, while the median annual income has only grown by a mere 0.4%. This growing wealth divide is pushing many residents out of the housing market and driving some to leave the city entirely.

To combat this, the City of Toronto has committed to advancing its HousingTO Action Plan, with the goal of constructing 285,000 new homes by 2031. This includes 6,500 rent-geared-to-income (RGI) units, 41,000 affordable rental units, and 17,500 rent-controlled units.

“Too many residents are burdened by the high cost of housing,” the report read. “These costs are driving people to leave Toronto.”

The city plans to incentivize affordable home development and increase density in areas close to major transit stations. The initiative aims to speed up housing construction and meet the growing demand for affordable homes.