Driving through downtown Toronto will probably supply you with a view of what looks like unconstrained, expanding construction. A seemingly endless story of more and more condos, might suggest that the giant cranes and blocked sidewalks are leading to an over construction of new condos in Toronto.
However, if too many new condos are the reality, then shouldn’t buying a new condo in Toronto be easy and probably a lot cheaper?
Here, we look at reasons for the opposite and why we actually may not have enough new condos in the pipeline in Downtown Toronto.
How could we need this many new condos in downtown Toronto?
The city is growing – that is something indisputable. What’s up for debate is whether it is actually growing at the rate the condo developments suggest by the amount of their construction.
On first sight, it seems like there is no way these condo units could be filled. Yet, according to Alex Bozikovic of the Globe and Mail, “The truth is that Toronto has too little housing and too many rules about where to build it” . The problem, Bozikovic goes on to explain, lies in the regulations that govern the city’s zoning plans.
These rules prevent any real development from occurring, save from a few pocketed areas, mostly in the downtown core. If you want to build a house, sure; but if you want to build up, producing a number of units for many residents, then that needs to be done in specific places.
In fact, if you look into the growth rates in the city, you will find that more than half of the city has either not grown at all or has regressed in its population during the decade from 2006-2016.
Go to where the growth is happening
Residents therefore are moving to where there is housing: to new condos in downtown Toronto. It is here that the construction is occurring because it is not allowed in many areas other than downtown Toronto.
Downtown, obviously, is also where a lot of the activities happen. Shops, restaurants, entertainment and events help to fill the downtown core of Toronto, along with office buildings and, of course, all those condos.
More people are moving down to where the action is; to where they both work and play – and to where housing is being developed. Immigration levels continue to grow and Toronto is a popular final destination for the many newcomers. People are also getting frustrated with their commute into the city for work and are trading off amount of space for amount of leisure time. The trend is switching from larger homes to smaller condo living.
And lastly, lets talk about affordability. Let’s face it Toronto isn’t cheap. However, on a global scale, downtown Toronto is still way underpriced compared to other major cities like New York, Hong Kong, Singapore, Tokyo, Zurich & more. As real estate investment still proves to be a great long term wealth builder, owning property in our great city of Toronto is a priority for many Torontonians. As the Condo market is the best entry point into the real estate market, the demand for Toronto Condos continues to be strong.
If you want to count yourself in on this equation, then contacting award-winning, downtown Toronto condo expert real estate agent Reza Afshar is the first step to finding the new condo in downtown Toronto that fits your needs and meets your living space dreams.
Having a real estate agent who’s an expert in downtown Toronto condos to get you what you really need and want – and for the right price. (See my post on the sorts of questions you should ask when looking into purchasing a condo by clicking here.)