Toronto’s Housing Supply Challenge and the Growth Plan Paradox

Toronto’s Housing Supply Challenge and the Growth Plan Paradox
Houses are under construction in a new subdivision in East Gwillimbury in the Greater Toronto Area on Jan. 30, 2018. Reuters/Mark Blinch
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TORONTO—Toronto, Canada’s largest city and one of the world’s hottest property markets, has a supply problem and the nation’s housing agency admits it is not quite sure why soaring prices have not spurred more construction.

New homes replace demolished ones at a sharply lower rate than early this decade, completion times for multi-family projects have doubled and prospective buyers have far fewer new homes to choose from than only a few years ago.