To be sure, there is a lot of condo construction underway at the moment. The latest figures from Canada mortgage and Housing Corporation (CMHC) show that a record 44,100 condo and apartment units were under construction in May of 2012, with an additional 6,200 other ‘multiple’ units (semi-detached and row houses). All in all, the Toronto region has never seen so much new residential construction (at least based on data going back to the early 1970s). It is important to keep in mind, however, that the construction cycle for condominium projects is long—up to three years. This means that, at any point in time, there are necessarily more multi-unit projects underway concurrently than there are for singles (the construction cycle of which is measured in months). The rapidly rising trend toward multiples starts in the past many years, therefore, has filled up the construction ‘pipeline’ in the Toronto area considerably. In this context, record-condo construction, in and of itself, is not proof of any excess. Looking at the end of the building pipeline, however, we note that the number of condo units reaching completion indeed is rising quite rapidly (and has been so during most of the past decade), but this increase is taking place while single-home completions have become a much diminished factor in the GTA. Total home completions for all housing categories in the area remain well below historical peaks.
Condos, Condos and More Condos
- July 27, 2012
CENTURY 21 Innovative Realty Inc., Brokerage*