Real Estate News

Toronto Proposed Property Tax Hike Sparks Concerns Over Affordability Crisis and Housing Market Impact


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Toronto's proposed 10.5% property tax increase for 2024 has sparked concerns among experts, exacerbating worries about the city's affordability crisis. The significant hike, confirmed by the budget chief, Shelley Carroll, is the most substantial in around 25 years, and experts argue it surpasses increases in other Ontario cities. The root cause of the property tax discussion lies in Toronto's massive $1.8 billion operating shortfall, partly attributed to support and shelter services for refugee claimants. Without additional federal funding by January 26, a potential 16.5% hike, including a 6% "federal impacts levy," looms, impacting both homeowners and renters.

The proposed increase is seen as a threat to Toronto's housing affordability, potentially making the city less accessible for first-time homebuyers. Realtor Kenan Yousef highlights that renters may also face collateral damage, as property tax increases are likely to be factored into rental costs by investors facing higher tax bills. Additionally, the dramatic hike raises concerns about its impact on the broader housing market, affecting the finances of individual households and potentially hindering new housing supply. Critics, including Managing Director Robert Brazzell, argue that the lack of transparency in Toronto's property tax system and the outdated property assessments contribute to inequities and compromise the equitable distribution of property taxes.

Read the full article on: STORYES


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Amandeep Singh
Amandeep Singh
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