Did The Land Transfer Tax Affect Housing Sales In The Greater Toronto Area?

IMFG Visiting Scholar Murtaza Haider explores the impact of the Land Transfer Tax (LTT) on housing sales in the Greater Toronto Area (GTA). Previous research has shown that housing sales declined after the implementation of the LTT but Dr. Haider’s research concludes that the negative impact on housing sales was not statistically significant. His findings build on previous research by including condominiums as well as single-family homes in the analysis, accounting for the influence of the great recession on housing prices, and comparing the decline in sales in Toronto to the increase in sales in the suburbs.