The Greater Toronto Area’s condo boom has reached a new peak, according to a report released Tuesday.
The Ryerson City Building Institute said that condo development reached its highest ever level in the middle of 2017 with 105,000 condo apartments currently under development.
The report said that at least half of the units – 94 per cent of which are pre-sold – have been sold to investors with the expectation that they will be rented on the secondary market.
But the market boom may not be servicing the needs of those looking to buy.
“The next decade will see significant growth in the 35-44-year-old age bracket,” the report authored by Cherise Burda, Graham Haines, Shaun Hildebrand stated. “This demographic will be seeking new family-friendly housing and will need housing units with at least two bedrooms.”
But the report says the solution to the lack of family-sized condos may have to come from outside the city limits.
“Building more family-friendly mid-rise and lowrise buildings may require development to shift to locations in the GTA with more affordable land costs than the Central 416. Yet it is the 416 that is in greatest need of family-friendly housing units,” the report states.
“If these construction trends continue, the proportion of family-appropriate housing available in location-efficient neighbourhoods (close to transit, employments, schools and services) will decrease, and affordability will further erode.”
The outer regions of the GTA – those with 905 area codes – appear to be trending more towards mid-rise buildings, in contrast to those within Toronto proper.
“This demonstrates the efforts made by these GTA municipalities to achieve growth plan densities through mid-rise and stacked townhomes,” the report said.
The proportion of 12-storey-or-less buildings in Toronto has decreased since the 1990s, according to the report’s findings from 56 per cent of the condo market to its current rate of 28 per cent.