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The Building Industry and Land Development Association (BILD) announced its February (2017) numbers today for the Greater Toronto Area. Here are some of the highlights:
- At the end of February, there were 324 detached homes available in developer inventories. Ten years ago, this number was was 12,064 (detached only).
- If you consider all low-rise homes (detached, semi-detached, and towns) the above numbers are 1,001 (2017) and 17,304 (2007), respectively.
- Average price of a new detached house is now $1,469,449. For all ground-related housing – again, including semis and towns – it’s $1,081,013.
- There were more than twice as many condo apartments sold than low-rise homes in February.
- Condo inventory is also dropping and reached a low of 10,342 units.
- Average price of a new condo increased to $652 per square foot and the average unit size decreased to 802 square feet.
Here’s that information in a chart from Altus Group:
The overall story here continues to be about decreasing inventory and increasing prices. There’s also the ongoing shift from low-rise to higher density housing, which I don’t view as a bad thing.
This morning BILD released its November new home data for the Greater Toronto Area.
The story is one we’ve been hearing for a while. Supply is trending downward. It’s becoming harder to build. And prices are up. The average new detached house in this region is now C$1,230,961 and the average new condo is now C$493,137 (~$601 psf). Overall, average pricing is up 20% for low-rise houses and up 10% for condos, compared to this time last year.
One of the things that I find interesting about the data is how unit sizes have recently started trending upward on the high-rise (condo) side. Below is a chart from Altus Group that shows what I’m talking about. Look at the increase from the middle of 2015 to today. The average is now 820 sf, compared to what looks to be around 770 sf at its lowest point.
I just got home from the 34th annual BILD awards. It’s late and I’m tired, but I had a good time. TAS won a few awards, including green builder of the year, and I saw a lot of old friends and familiar faces.
For those of you not in the industry, BILD is the Building Industry and Land Development Association. And every year a gala is held where a bunch of awards are given out for things ranging from the best marketing brochure to the best suite design under 750 square feet. If you’d like to get a feel for the event, check out #BILDAWARDS.
It was held out in Woodbridge, which is a suburb of Toronto. So today, I did something that I don’t do all that often or even every week: I drove my car. That’s fine, but it reminded me that one of the perks of living in a dense and transit oriented area (like downtown Toronto), is that you never have to worry about drinking and driving.
I’m really disciplined about not doing that, but it’s nice not to have to worry about it. It can make driving feel like a liability. So there’s another reason to love cities. You can drink whenever you want.
The Building Industry and Land Development Association (BILD) announced its February (2017) numbers today for the Greater Toronto Area. Here are some of the highlights:
- At the end of February, there were 324 detached homes available in developer inventories. Ten years ago, this number was was 12,064 (detached only).
- If you consider all low-rise homes (detached, semi-detached, and towns) the above numbers are 1,001 (2017) and 17,304 (2007), respectively.
- Average price of a new detached house is now $1,469,449. For all ground-related housing – again, including semis and towns – it’s $1,081,013.
- There were more than twice as many condo apartments sold than low-rise homes in February.
- Condo inventory is also dropping and reached a low of 10,342 units.
- Average price of a new condo increased to $652 per square foot and the average unit size decreased to 802 square feet.
Here’s that information in a chart from Altus Group:
The overall story here continues to be about decreasing inventory and increasing prices. There’s also the ongoing shift from low-rise to higher density housing, which I don’t view as a bad thing.
This morning BILD released its November new home data for the Greater Toronto Area.
The story is one we’ve been hearing for a while. Supply is trending downward. It’s becoming harder to build. And prices are up. The average new detached house in this region is now C$1,230,961 and the average new condo is now C$493,137 (~$601 psf). Overall, average pricing is up 20% for low-rise houses and up 10% for condos, compared to this time last year.
One of the things that I find interesting about the data is how unit sizes have recently started trending upward on the high-rise (condo) side. Below is a chart from Altus Group that shows what I’m talking about. Look at the increase from the middle of 2015 to today. The average is now 820 sf, compared to what looks to be around 770 sf at its lowest point.
I just got home from the 34th annual BILD awards. It’s late and I’m tired, but I had a good time. TAS won a few awards, including green builder of the year, and I saw a lot of old friends and familiar faces.
For those of you not in the industry, BILD is the Building Industry and Land Development Association. And every year a gala is held where a bunch of awards are given out for things ranging from the best marketing brochure to the best suite design under 750 square feet. If you’d like to get a feel for the event, check out #BILDAWARDS.
It was held out in Woodbridge, which is a suburb of Toronto. So today, I did something that I don’t do all that often or even every week: I drove my car. That’s fine, but it reminded me that one of the perks of living in a dense and transit oriented area (like downtown Toronto), is that you never have to worry about drinking and driving.
I’m really disciplined about not doing that, but it’s nice not to have to worry about it. It can make driving feel like a liability. So there’s another reason to love cities. You can drink whenever you want.
Now, there are a number of possible explanations for this. One is that boomers are starting to sell their houses and move into condos in larger numbers, and 500 sf just don’t do. The market is starting to cater to them. Another possible explanation is that low-rise pricing has become so out of reach for many people and families, that they are now looking to condos to fill that need.
I see both scenarios playing out in new projects today. But this second scenario, in particular, is one that I’ve been thinking about for a few years now. It’s less obvious than the boomer play. But I think of it as the market maturing. I like seeing families living right in the city and I am sure we will see more of that in the future.
Now, there are a number of possible explanations for this. One is that boomers are starting to sell their houses and move into condos in larger numbers, and 500 sf just don’t do. The market is starting to cater to them. Another possible explanation is that low-rise pricing has become so out of reach for many people and families, that they are now looking to condos to fill that need.
I see both scenarios playing out in new projects today. But this second scenario, in particular, is one that I’ve been thinking about for a few years now. It’s less obvious than the boomer play. But I think of it as the market maturing. I like seeing families living right in the city and I am sure we will see more of that in the future.
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