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Population growth isn’t driving Toronto house prices. So what is?THE CANADIAN PRESS/Pawel Dwulit
Last summer, in the frankest terms possible, Bank of Canada Governor Stephen Poloz warned home buyers, homeowners, mortgage lenders and the real estate industry that nothing justified Toronto’s skyrocketing house prices. Nothing. Zip. Zilch. Nada.
Toronto didn’t get the message.
In its recent outlook for 2017, the Toronto Real Estate Board said it expects the average house price in the greater Toronto area to surge by another $100,000 this year to $825,000. That would be on top of a $120,000—or roughly 20 per cent—increase in 2016. In making its forecast, the board repeatedly credited one factor for driving higher prices in Toronto: population growth.
Well, earlier this week Canadians got their first look at the results of the 2016 census, when Statistics Canada released population and dwelling counts for the country. And while the overall trend saw stronger population growth in urban centres, Toronto’s showing was rather middling…

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