In recent years, we’ve begun to see a major shift in the housing markets of major cities. With the economy up and down, property ownership in metropolitan areas is moving away from houses and towards the more affordable alternative of condominiums.
Aside from affordability, this could be due to a number of factors. First, condos are typically located within walking distance of city centers, restaurants, shops, and core transit lines. The convenient locations of these housing opportunities is a major plus for buyers who would otherwise have to look to the suburbs to own a house. The decrease in commute allows people a greater work/life balance, as well as the saving of money from ever-rising gas prices.
Even further, due to the presence of Condominium Corporation Management (CCM), the cost of maintenance on condos is much cheaper because the CCMs cover all expenses on the exterior of buildings, HVAC, plumbing, etc. much like an apartment building would. While this does not come without a cost, potential buyers can take solace in the fact that most CCM fees make the price of the actual condo cheaper on a per square footage basis.
In Toronto, for example, the market for condos is especially gaining traction, due to the “solid performances of the resale and rental condo markets in the second quarter,” says Urbanation Senior VP Shaun Hildebrand. On the other hand, new low-rise home sales through the end of June this year, have shown a 41% decline from 10-year averages according to RealNet.
Ultimately, condos in major cities offer buyers more versatile options for living in 2013 and beyond, a fact that doesn’t seem likely to change anytime soon.