Development at 360 City Centre Dr by Daniels Announced
The Daniels Corporation, the development firm who has built multiple properties in the City Centre and Erin Mills Town Centre areas in the city, is slated to construct an affordable housing project at 360 City Centre Drive. More information about this project can be obtained directly from the Builder.
Canada’s first ever National Housing Strategy is a 10-year, $40-billion plan that will work to create more affordable housing.
Under the Canada-Ontario Investment in Affordable Housing (IAH) agreement, Ontario and the federal government are investing a total of $1.9 billion to improve access to affordable housing across Ontario.
Whether or not these measures will keep pace with the growing housing demand, it is at least a step in the right direction.
“Housing affordability is a priority for our city and is fundamental to a healthy, inclusive and sustainable community,” says Mississauga Mayor Bonnie Crombie. “This new development supports our city’s goal of making housing affordable for all by ensuring that a range of units geared to all income levels is made available. Together, we are building a city where residents from all walks of life continue to thrive and enjoy a quality of life second to none.”
Why are steps like Mississauga affordable housing development being taken?
- A home is considered affordable when its inhabitants spend 30% or less of their income on housing costs
- 1 in 3 households are spending more than 30% of their income on housing, and this spending is bound to increase
- Middle income households typically net between $50,000 and $100,000 a year
- Middle income earners include nurses, teachers and social workers
- People who want to purchase homes can typically afford to pay between $270,000 and $400,000, meaning their only options are condos and a limited selection of townhouses
- Housing prices are adversely affected by supply and demand imbalance
- The average rental unit costs $1,200 a month
- Rental inventory as low as is 1.6%
- The city is focusing on middle income earners because they typically make too much to qualify for government assistance, but still cannot afford to rent or purchase homes in the city.
Source courtesy: Expatisan/ Insauga
Mississauga affordable housing development in the third most expensive city in Canada
The most expensive Canadian city is Toronto, followed by Vancouver and Mississauga.
Toronto Price Index: 184
Vancouver Price Index: 179
Mississauga Price Index: 178
It is not surprising to see Mississauga on the list given our city’s proximity to Toronto. One would wonder what the future holds, particularly in the case of home ownership, especially for first time home buyers, be it newcomers or Gen Y.
While real estate prices are high in the GTA in general, homes are particularly pricey in Mississauga. Even with the market adjustment since 2017, most homes are out of reach of most hopeful home owners due to stringent mortgage rules & interest rate increase. Detached homes are still sitting around the $1 million mark and condos start around $400,000. The issue is not just with home prices, but the fact that people are not qualifying for higher loans.
So will Mississauga affordable housing development make a dent in the market?
While the governmental efforts are laudable, release of one project alone will not suffice the existing demand. While this will definitely cater to the needs of some low income and middle income residents, a lot needs to be done, and fast. There are many buyers who may have sizable double family incomes & money for down payment, who still aren’t able to find their ideal home. The problem is not just with buyers, but with renters too.
We are constantly swarmed with requests from renters looking for a simple 1 BR or 2 BR condo in Mississauga, let alone first time home buyers looking for an affordable home or condo in Mississauga.
Newcomers To Mississauga face rental housing shortage
Imagine the plight of newcomers who a.) cannot find a place to rent and b.) if they do, the rents are exorbitant. Mississauga has been a popular bedroom suburb city of choice for many who work in Toronto. Now Mississauga has outgrown its image of a suburb and is getting fast established as a metropolitan city of choice, in fact the third most expensive city of Canada.
Where does this leave First Time Buyers looking to buy now or in next 1-2 years?
First time home buyer options 2018 in Mississauga include condo apartments (in less than $450,000 price range) and townhouses (in less than $650,000 price range). But again it all depends on eligibility for mortgage loan. Luckily, City Centre area of Mississauga still has quite a few builder new condo projects in Mississauga in “under construction” and pre-construction stages.