The reason there aren’t more houses being built near Newmarket, Aurora and East Gwillimbury has almost nothing to do with builders, interest rates, or demand. It’s that the pipes aren’t there. You cannot build a house you can’t flush a toilet in, and across some of the fastest-growing parts of Ontario, the sewage capacity to serve new homes simply does not exist yet.
This is the least-discussed reason housing supply stays tight — and unlike interest rates, it does not turn around in a year.