Scarborough Developers Push Forward

Written by Tom Curtis, Realtor®

Royal LePage Estate Realty Commercial

As of November 2024, the Toronto Regional Real Estate Board (TRREB) states that the average detached house in Toronto East now costs $1,218,833, and the average condominium apartment, despite a significant recent softening of that market, is currently at $638,453.

Compare these numbers to just a decade ago: in November 2014, detached houses cost $642,967 on average, and condos just $274,031.

Scarborough Developers Push Forward

According to Statistics Canada, the GTA's population has surged by nearly one million residents in the past decade alone, and projections suggest this growth will continue. Yet there is now broad consensus that the supply of new housing has failed to keep pace. Of the limited supply that has been built, many observers have also flagged a major and growing disconnect between the supply and demand of housing by type—namely, low-rise vs. multi-unit buildings.

Basic economics tells us what happens when supply can't keep up with demand: shortages occur, and prices rise. Toronto Metropolitan University's Centre for Urban Research and Land Development stated that, "Under the current planning and growth environment, the affordability crunch for single-family homes will not disappear. Even with the provincial government's initiatives to accelerate the production of more housing, including single-family homes, the more realistic prospect is that GTA municipalities will not be able to produce anywhere near the volume of single-family homes required to provide affordability relief."

Depressing reading, but perhaps then there is hope to reduce or at least stabilise the prices of homes in multi-unit buildings, like condos? If enough product is built, maybe we can dream of condo prices more in line with Ottawa ($422,570) and Calgary ($353,733)?

Maybe not. Despite the urgent need for more housing, Toronto developers are facing unprecedented barriers delivering the housing its residents desperately need. Many developers have hit the brakes on new project launches, and it is anticipated that significant numbers of more marginal projects are likely indefinitely on hold. Construction costs remain inflated, and still-elevated interest rates have made borrowing significantly more expensive. Compounding these challenges are municipal development charges, which have reached levels many in the industry deem unsustainable.

Matt Young, Republic Developments' President and CEO, has identified taxes as a driving factor in the slowdown in project launches. In a letter to all levels of government, Young stated that, "in 2009, taxes and fees accounted for approximately 12% of the cost of an average condo in Toronto—for example, $36,800. Today, combined federal, provincial, and municipal taxes account for 29.2%, or over $240,000 in taxes for the same home." He highlighted that

"the tax costs per home in real dollars is up nearly 600% in 15 years, with development charges alone increasing nearly 1200%."

Young is so concerned about the current economic and policy environment in the GTA that he has led a group of prominent developers in a pledge to "immediately reduce the price of all homes we sell by the amount saved from tax reforms, dollar for dollar" in taxes.

Scarborough Developers Push Forward

The good news is that Republic is forging ahead with its huge Scarborough Junction project, a master-planned community at 3585–3595 St. Clair Avenue East, directly adjacent to the Scarborough GO Station. This project is ultimately planned to deliver 7,655 units across 12 buildings.

Another developer committed to enhancing south Scarborough's housing landscape is Equiton, now ramping up presales for its 13-storey project at 2257 Kingston Road. This development will add approximately 300 units to the Cliffside neighbourhood, aiming to provide options for existing residents to remain in the area when downsizing or leaving the family home. Alan Dillabough, Equiton's VP of Development, emphasizes their focus on creating "human scale, highly livable condominium projects in well-established and highly desirable neighbourhoods." Dillabough highlighted Cliffside as a "perfect example of the communities that we want to support and develop within."

In an increasingly competitive market where many developers are striving to make their projects stand out as distinctly local, Equiton continues to see demand for "places where people can put down roots," even amid today's softer condo market.

The success of developers like Equiton and Republic is essential to providing opportunity for prospective homeowners and tenants in our neighbourhoods. While these projects are progressing, many others in the region are not—many are on hold, others are being cancelled outright. Toronto cannot afford to let its housing crisis deepen.

Mason Road Junior P.S. was ranked 37 out of 470 TDSB elementary schools, with number 1 having the most external difficulties. Factors that affect this index include the median income, percentage of families below the low-income measure, percentage of families receiving social assistance, number of adults with low education, number of adults with university degrees, and the number of non two-parent families within the same postal code as each school listed.

Their efforts in this campaign, and other campaigns like it, can always use help from the community in the form of volunteers, item donations, and cash donations.

Expand for more information:

📢 Operation Warm has a wish list that individuals and groups can request items from, which donors can apply to sponsor: Operation Warm

📢 Those interested in volunteering for the effort can apply through their Community Impact Volunteer program: Community Impact

FedEx participates in many other Canadian charitable efforts such as:

• Plane Pull for Sight for Orbis Canada in Toronto, Vancouver, and Calgary

• Toronto Bike for Brain Health event in support of Baycrest Foundation

• 48-Hour Ride in Mirabel in support of Make-A-Wish Canada

• They always appreciate new donors and volunteers.