The number of homes in Toronto has increased at a faster pace than the city’s population over the past five years, according to new census data that provide a fresh look at the mismatch between housing supply and demand in the city.

The number of private dwellings in the Toronto area rose by 7 per cent, to 2,394,205, between 2016 and 2021. Meanwhile, the area’s population grew by 4.6 per cent, to 6,202,225 residents, according to the census figures, which were released on Wednesday.

These new numbers call into question the often-cited idea that a shortage of homes isa major reason the city’s housing prices have soared to record highs. The typical home across the country is 41 per cent more expensive than it was in January, 2020. In Toronto, the typical home price rose 52 per cent over the past two years.

“The fact that the number of dwellings has risen strongly, and even faster than the overall population in both the past five and 10 years, suggests that a big supply response is not going to magically solve this issue all by itself,” said Douglas Porter, chief economist with Bank of Montreal. “Policy makers will also need to address the demand side.”

The federal housing agency, many economists and the real estate industry have repeatedly said there is a shortage of homes in Canada, and that one solution to the country’s housing affordability crisis would be to ramp up the construction of residential real estate.

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