The Provincial Government has been on a campaign to stop development outside of the GTA by constraining and delaying applications.
As a result people are being forced into the GTA because no capacity for living and amenities are available outside the horseshoe.
This what is happening, has nothing to do with Foreign buyers, because the international community has always been investing in Canada. Probably less Foreign purchases in Toronto than Vancouver, from what I hear, that may not be true.
Rate of immigration changes nothing, because we have always taken in the same amount of immigrants per year.
And has nothing to do with speculation, because if the market has a demand which greatly surpasses the supply then prices naturally go up.
Don't forget, our dollar has devalued by 30% over the past 5 years.
There are some possible solutions, but not limited to:
1. Reduce the amount of immigrants granted landed status. There are moral consequences to this.
2. Plan and allow centralized communities to be developed outside of the GTA
3. An Empty Home Tax
This is the classic Wynne knee jerk and is tampering with the housing market without examining data, facts and economic outcomes.
As great as the Federal Liberal Government has been to date at being calculative and careful, I think the K.Wynne has just single handedly sealed the Libs political tomb.
Get comfortable with unemployment everybody.