5 charts that explain Toronto’s still-in-demand condo market
As the last affordable option for many homebuyers in the Toronto area, the city’s condo market hasn’t been impacted by Ontario’s foreign-buyer tax in the same way that the low-rise segment has. To put the still-in-demand segment into perspective, BuzzBuzzNews has rounded up five charts from the past half year.
What’s going on here: The number of homes under construction each quarter in Ontario over the past half century.
The takeaway: In this year’s second quarter, contractors were working on more homes than in any quarter in recorded history, largely due to major condo projects in Toronto. “This is a solid amount of building that should fully meet demographic demand,” writes BMO Senior Economist Robert Kavcic.
What’s going on here: Knight Frank compares luxury rents in 17 upscale markets during Q1. The UK-based consultancy generally considers a luxury rent to be in the top 5 per cent of a market by value, and Toronto’s index is based on two-bedroom condo and purpose-built apartment rents of this calibre.
The takeaway: Toronto placed fourth, and here’s why: “As the population of Toronto continues to grow, the demand for rental apartments also continues to grow,” Taimur Khan, a senior research analyst at Knight Frank, tells BuzzBuzzNews. “The supply of rental apartments has not kept up with demand.”
3. Toronto condo prices based on what subway station they’re closest to
What’s going on here: Using precise GPS coordinates, The Red Pin maps average condo prices from May for resale one-bedroom condos within 2 kilometres of each of Toronto’s subway stations, BlogTO reports.
The takeaway: If you’re looking for an affordable home in Toronto these days, you may want to check out condos in Scarborough, particularly those near the Kennedy and Lawrence East TTC stations.
What’s going on here: BMO charts year-over-year increases in the GTA condo market each month based on the Canadian Real Estate Association’s MLS Home Price Index.
The takeaway: In the first full month of sales activity after Ontario announced its Fair Housing Plan, Toronto’s condo market wasn’t hit as hard as low-rise segments were. The fact that so many buyers have been priced out of other segments creates stronger demand for condos, despite the overall housing market cooling.
What’s going on here: Average asking prices as of the first month of this year for available new low-rise (green) and high-rise homes (orange) each month dating back to 2004.
The takeaway: “The GTA is facing a severe shortage of housing supply, particularly for single-family homes which sell as soon as they come to market,” BILD President and CEO Bryan Tuckey wrote earlier this year. “When there aren’t enough homes to satisfy demand, prices increase and that is exactly what has been happening in our region over the last decade,” he notes, suggesting this at least partly explains the pricing divergence between low- and high-rise homes.
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