This is probably one of the most contentious topics when it comes to real estate. Is there a bubble? I say, No.
I don’t consider myself an expert when it comes to the overall economy and I certainly do not have my doctorate so I can’t call myself that but I do have an opinion and here it is.
I believe the real estate market boils down to a couple of key factors. Population growth and employment.
The GTA’s population is projected to grow from 6.6 million in 2015 to 9.5 million in 2041. All these people need a place to live which will create constant demand for the existing homes and condos thus driving up prices and will continue to drive the new construction market and support the increases in prices we have seen.
When it comes to employment, Toronto has a very good credentials that are not going to be changing anytime soon. We have 5 of the nation’s largest banks head quartered here, the majority of the nation’s large pension funds are here. We are home to the Toronto Stock Exchange, we are the provinces capital and have a massive public sector employment base as well as most of the large insurance companies call Toronto home. We are also the mining capital of the world. All of this helps supports or service based industries and our manufacturing.
My opinion is that when people have jobs they want to buy homes and investment properties and that is what we are currently experiencing and what I believe will continue to happen for the foreseeable future.