It’s no surprise Toronto’s housing market is reaching critical levels as the rising cost of living, high rental rates, a shortage of construction workers and the city’s growing population are exacerbating the imbalance between supply and demand.
Toronto is experiencing a surge in condominium listings, but few highlight that the suites are primarily small and not fit for family living. According to the Toronto Regional Real Estate Board (TRREB)’s June 2024 market watch data, listings for units in the 500- to 599-square-foot range soared by 50 per cent compared to last year.
Are Torontonians being heard?
Unfortunately, family-sized condominiums make up only about 10 per cent of the market, despite a growing and pressing demand from families. This shortage of larger, multi-bedroom suites designed for families and multigenerational living leaves many buyers, particularly those seeking homes that accommodate extended families, underserved and frustrated. This begs the question: when it comes to housing supply, are Torontonians being heard?
In April, we conducted a survey with members of the Angus Reid forum to capture what Torontonians are feeling about Toronto condominiums, and the results were illuminating. Almost half of respondents (47 per cent) see the potential for condominiums to be their long-term homes, and this statement is echoed strongly by current condominium dwellers, with 71 per cent expressing confidence in condominium living.
However, despite the increase in positive outlook, a staggering 93 per cent of respondents believe that Toronto needs better-built condominiums that suit people’s lifestyle needs, and nearly four in five respondents think that most Toronto condominium units are poorly constructed, indicating dissatisfaction with the current landscape.
Market caters to a misguided notion of “investor” instead of “end-user” condominiums
For condominium developers like us, this disconnect between what’s available in the market and what Torontonians need and want is strikingly clear. For far too long the market has catered to a misguided notion of what “investor”-focused condominiums are, rather than “end-user” condominiums.
This belief has been that investor buyers are predominantly interested in smaller units.
We believe all condominiums should be end-user-focused, and by meeting the demands of end-users, they become a good investment as well. This notion of catering to investors has led the market with an overwhelming supply of small units that many do not deem as viable homes.
Understanding and responding to Torontonians’ housing needs
A home should inspire pride and satisfaction. It should not be a compromise driven by convenience. Torontonians need not settle for underwhelming condominium developments with small suite layouts and poor build quality. Developers need to listen and create homes that meet the real needs and aspirations of the people, rather than simply adding more shoebox units to Toronto’s already imbalanced housing stock.
All of this just scratches the surface of the issue. Beyond size alone, developers bear the responsibility to construct sustainable, high-quality homes that meet people’s expectations. Much of today’s condominium stock lacks the thoughtful architecture, quality and design necessary to make condominiums both a comfortable and enjoyable home for everyone.
We’ve all heard the same story from our friends who live in condominiums: “I can hear my neighbours,” “The wait time for the elevators is far too long,” and so on. It’s really no wonder that more than 34 per cent of Torontonians believe that owning a condominium is like owning a box in the sky, but it doesn’t have to be that way.
Liveability above all: Condominium developers need to keep quality at the core
The growing dissatisfaction among condominium owners suggests that we need to make a drastic change in what we’re building and how we’re building it.
Developers must shift their focus to quality and liveability. This means designing homes that people are proud to own and live in, with the space, comfort and amenities that support a high quality of life, creating sustainable, vertical urban environments for people of all ages and life stages. We need to build condominiums that make people want to live in Toronto and enjoy everything that our beautiful city has to offer.
Bridging the gap is a developer’s responsibility
Toronto’s housing crisis requires an approach that addresses both the quantity and quality of homes and developers have a crucial responsibility in this. The solution isn’t just about building more units; it’s about building the right kinds of homes.
Only by closing this gap between what’s available and what’s needed can we hope to resolve the crisis and create a city where everyone feels at home.
Pouyan Safapour, President of Toronto-based development company Devron, is a highly regarded leader in real estate and land development known for his innovative process and strategic vision. As President, Pouyan spearheads the company’s mission to create high-quality, consumer-focused buildings that meet the needs of homeowners, reflect the culture and history of the surrounding neighbourhoods, and are built to last. Pouyan continues to guide Devron to success by creating impactful projects that will enhance the lives of Toronto residents by setting a new standard for quality and design across the industry.
During the too-low, for too-long Low-interest cycles of both the post-GFC and the Kovid Krazy eras it is true that “For far too long the market has catered to a misguided notion of what “investor”-focused condominiums are, rather than “end-user” condominiums.”
The AFFORDABILITY crisis only emerged for Gov’ts and builders, and developers when the NON owner-occupier market evaporated simultaneous with the disappearance of First-Time buyers – both because prices were too high and AT THOSE RATES were just not-worth it.
The current Federal programs to subsidize (already planned and) very expensive rental construction doesn’t provide affordable homes/units and the Provincial idea to intensify permissible residential densities/uses “as of right” irrespective of municipal Official Plans, infrastructure capacity or neighbours’ wishes – usta be called Block-Busting!
The Canadian urban future will indeed be bleak with these (and the Guilt about everything Green Agenda) as its guiding principles.
Let’s start by suspending the Places to Grow and GGH Greenbelt legislation – just for 5 or 10 years and compare notes afterwards.
Maybe by then we will have enough practical (and affordable) built evidence that we can rescind them completely.
Obviously, builders are happy to sell to whomever wants their product. Larger condos have been marketed often over my 40 years in the industry. The real issue is that end users generally do not want to wait 3-4 years for their hone to be ready as their needs are usually more immediate. Thank goodness that investors are willing to put down money and wait for years until construction is completed, or we would have even fewer newly built condos.