In an increasingly costly market, low-cost housing is becoming more important than ever
London, ON is set to receive a federal tranche worth $130 million for the development of two major multi-residential buildings, with a total of 420 low-cost units.
Earlier this week, the Government of Canada and the City of London jointly announced the construction of the affordable housing complexes at 495 Talbot Street and at 110 Fullarton Street.
Slated to be developed by Old Oak Properties Inc., the project will be funded by the National Housing Strategy through CMHC’s Rental Construction Financing initiative.
The program is intended to make more low-cost options available for the city’s struggling middle-class households. As much as 26% of the units to be built have rents lower than 30% of London’s median income.
“There is likely no issue more pressing, no issue more important in London right now than that of affordable housing. Nearly 5,000 Londoners are on the waitlist as demand continues to rise,” London mayor Ed Holder said.
“We are committed to solving this challenge, but no municipality can do it alone. That is why partnerships such as this mean so much. The commitment shown by the federal government and Old Oak Properties Inc. is significant, and worthy of substantial recognition. This will make a meaningful difference in the lives of a great many Londoners for years to come.”
A major factor in this projected growth is the intensified migration from the crippling prices in the Greater Toronto Area.
“2019 was definitely what we would call a sellers’ market,” according to Earl Taylor, the president of the London and St. Thomas Association of Realtors. “There are definitely more buyers than there are sellers right now. I think 2020 will be very similar to 2019.”
CMHC senior market analyst Anthony Passarelli cautioned that London’s prices will likely break records this year, up to as high as $450,000 by the end of 2020.
