A Toronto Condo Bubble?

Toronto has experienced a virtual explosion in high rise condominium construction in recent years, especially in the downtown area. According to Bloomberg, Toronto has the largest number of high-rise condominium towers under construction in the world.

However concerns are being expressed that the market may be saturated and that a housing bubble is developing. The Toronto Starreports that new condominium sales declined 55 percent in the first quarter of 2013, compared to last year.

At the same time, a huge number of new condominium units is under construction in Toronto. According to The Star, 57,000 units were being built during the first quarter. The first quarter build rate is reported as the largest rate ever. For their part, builders have scaled back plans for new towers

Who is Buying?

In an article entitled, “Toronto Condo Investors Under Water,” the Toronto Condo Bubble|Toronto Housing Bubble website (subtitled Largest Housing Bubble Except for Vancouver of Course) asked:  “… if condo living is the way of the future, then why is it that the majority of people who buy condos never actually live in them?”

The question was in the context of a report by Scotiabank that between 45% and 60% of Toronto condominium purchasers were investors, rather than people who actually intended to live in the housing.

Single Family Housing in Toronto: The Holy Grail

At the same time, The Star points to indicators that the single family housing market retains considerable strength. Part of the reason is that this most desired type of housing is made far more difficult to build as a result of provincial land-use policies (urban containment, including the Toronto "greenbelt").According to The Star, "That’s made detached homes, in particular, the coveted Holy Grail of housing."

Despite the explosion in condominium units, Statistics Canada data indicates that 71 percent of net new occupied housing in the Toronto metropolitan area was detached between 2006 and 2011.

These market dynamics, rising detached house prices relative to incomes and heightened speculation are predictable outcomes of urban containment (land rationing) policies.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

i was just browsing along

i was just browsing along and came upon your blog. just wanted to say good blog and this article really helped me.
Neuecreative

Impressive web site,

Impressive web site, Distinguished feedback that I can tackle. Im moving forward and may apply to my current job as a pet sitter, which is very enjoyable, but I need to additional expand. Regards.
luggage

I havent any word to

I havent any word to appreciate this post.....Really i am impressed from this post....the person who create this post it was a great human..thanks for shared this with us.
http://pdflirt.com

I know your expertise on

I know your expertise on this. I must say we should have an online discussion on this. Writing only comments will close the discussion straight away! And will restrict the benefits from this information.
remove before flight

This is really a nice and

This is really a nice and informative, containing all information and also has a great impact on the new technology. Thanks for sharing it,
empresa de hosting

Its a great pleasure reading

Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that "The content of your post is awesome" Great work.
abc 6 com

starofservice.bo

Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article.
starofservice.bo

home warranty america

I really love the quality writing as offered on this post, cheers to the writer.
first american home insurance
the first american
home warranty america

I am always searching online

I am always searching online for articles that can help me. There is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job!
wordpress directory theme

Im no expert, but I believe

Im no expert, but I believe you just made an excellent point. You certainly fully understand what youre speaking about, and I can truly get behind that.
finden es online