ERIN HENRY
Broker/Manager, Royal LePage Real Estate Services Ltd. Brokerage
Erin Henry is an experienced Broker/Manager providing comprehensive real estate services to home buyers and sellers with over 25 years of dedication and expertise! erinhenry.ca
Toronto condos are shrinking! Toronto condo prices are rising! As the city continues to grow, we see an ever increasing need for housing, tilting the supply and demand scale at an alarming rate. The only way is up and in.
According to Statistics Canada, the square footage of Toronto condo reached a peak sometime in the early 1990s. Since then, the median square footage has compressed by almost 40%. Interestingly, as detached homes square footage grew, the average median price remained relatively steady until recent years. Meanwhile, as condos continue to get smaller, the price per square foot is on the rise.
*Royal LePage, reported the median price per square foot of a Toronto condo was $743 in 2019. The average in 2021 rose to over $900 per square foot and no slowdown in sight.
The harsh reality is that while condos are decreasing in size, the price per square foot is escalating. Therefore, you are paying more for less. See graph from REM Magazine below.
Now let’s look at glass half full for Toronto condos, regardless of size/vs price per square foot. As the city becomes more and more dense, investors and end users are still eager to enter the marketplace; detached homes are becoming increasingly unattainable, and there is also shortage of supply. Certainly a sellers’ market!
There are several factors contributing to the shift in square footage. At one time condos were viewed as an alternative to detached homes, hence the older, larger layouts. In today’s fast paced world, condos are preferred as a lifestyle option, to pitstop, venture out for nightlife, theatre, dining, exercise and to attend school. Millennials especially, spend more time out of the home than in. They are more concerned with location vs size. Unfortunately, the diminishing square footage is making it harder for families to find accommodation, which makes things far more competitive.
Another factor is pure geography. Toronto’s footprint is dwindling year over year. This creates a need to build in and up. Consequently, the condos are smaller to accommodate the increasing demand yielding a higher supply.
Nonetheless, as prices trend north, and square footage heads south, Toronto
condos remain a significant driving force in this heated real estate market!
*All information correct at time of publishing and should be verified by the Purchasers and Sellers.
If you have any questions, contact Erin.
*All information correct at time of publishing and should be verified by the Purchasers and Sellers
