The thriving demand for Toronto condos in the past decade has been fueled by the scarcity of downtown land, historically low interest rates, and the growing desire to live near work and entertainment. Many building developers are targeting young professionals, who are looking for their first place near the TTC, nightlife and other entertainment hotspots.
It’s not just the young professionals though. As average housing prices increased, condo ownership began to rise and diversify (see chart below). According to Toronto Life, “only 20% of condo owners in Toronto are under 35. Roughly a quarter are seniors, and the rest, about 55%, are in their 30s, 40s and 50s, well into their child-rearing years”.
Furthermore, according to Urbanation, homeowners in Toronto are facing rapidly rising prices for ground level housing and are driving up demand in Toronto’s condominium market, as buyers are increasingly looking for larger units.
Shaun Hildebrand, VP of Urbanation, said “with not a lot of supply of these [larger] units in the resale market, new condos have seen rising demand, which is leading developers to shift strategies and include more two-bedroom and three-bedroom units”. These two or three bedroom units are often priced at a premium; some even occupied by 4 or 5 students who have pooled their money together.
Sales & Average Price by Condos October 2016
This chart shows the sales and average price by condos in October 2016 and year-over-year percent change from the same month last year. A 12.5% rise in total average price did not deter home buyers from purchasing condos, with an increase of 22.2% in total sales when compared to 2015.