February data (2018) for the new home market in the Greater Toronto Area was released this past week by BILD and Altus. I seem to have gotten into the habit of writing about this every month.
The benchmark price for new low-rise single-family housing was down slightly from January to $1,219,874, but still up 12.8% from a year prior.
The benchmark price for new high-rise housing was up a whopping 39.5% year-over-year to $729,735. But part of this is being driven by an equally dramatic increase in average unit sizes.
Here is the relevant graph:
The story continues to be about tight supply, historically low developer inventories, and a lack of affordable low-rise product.
As I have argued many times before on this blog, I believe these factors — and in particular the last one — are, at least partly, driving this recent pop in high-rise pricing. People are priced out and now searching for substitutes.
So my prediction continues to be that we will see a convergence (i.e. diminishing spread) between new low-rise and high-rise pricing.
That will also bring about design and product changes on the high-rise side.
So this is interesting.
Earlier this month, Travis Kalanick – co-founder of Uber and its former CEO – formed a new venture fund called 10100. According to the WSJ, it was funded with his own money after he sold 30% of his position in Uber for a cool $1.4 billion.
Ten-one-hundred’s spartan website explains that the goal of the fund is “large-scale job creation, with investments in real estate, ecommerce, and emerging innovation in China and India.” On the non-profit side, the initial focus will be on “education and the future of cities.”
Then this week, Travis tweeted out “My new gig…” and disclosed that 10100 had entered into an agreement to buy a controlling interest in a real estate holding company called City Storage Systems (CSS) for $150 million.
He also announced that he would become CEO.
The focus of CSS is on the redevelopment of distressed real estate, particularly parking, retail, and industrial assets. He goes on to say: “There are over $10 trillion in these real estate assets that will need to be repurposed for the digital era in the coming years.”
This whole series of events is a big bet on some significant changes in the real estate space.
Photo by Martin Reisch on Unsplash
Last night I casually asked the Twittersphere what the most important condo amenity is, besides a gym.
That tweet got quite a few responses – everything from rock climbing to a proper facility for realtor lock boxes.
Given the response, I thought it would be worthwhile to be a bit more rigorous in this analysis. So I have created an online survey that you can very quickly fill out by clicking here.
Here’s how this is going to work:
- You have to enter your email address. Sorry, some friction. I figured that would make the data a bit more reliable. Don’t worry your email is safe.
- You can select a maximum of 3 amenities. One of them can be “Other”, in which case you would then enter in an amenity not already found on the list.
- The order of the amenities in the survey is being randomized so as to avoid any possible it’s-near-the-top-and-I’m-too-lazy-to-scroll bias.
- You’ll be able to see the results of the survey after you’ve responded. I’ll also post the results to this blog so that it’s public and people learn things. Individual emails will, of course, never be published.
Developers should be building what people actually want and will use. Now is your chance to tell us what that is. Click here for the survey.
February data (2018) for the new home market in the Greater Toronto Area was released this past week by BILD and Altus. I seem to have gotten into the habit of writing about this every month.
The benchmark price for new low-rise single-family housing was down slightly from January to $1,219,874, but still up 12.8% from a year prior.
The benchmark price for new high-rise housing was up a whopping 39.5% year-over-year to $729,735. But part of this is being driven by an equally dramatic increase in average unit sizes.
Here is the relevant graph:
The story continues to be about tight supply, historically low developer inventories, and a lack of affordable low-rise product.
As I have argued many times before on this blog, I believe these factors — and in particular the last one — are, at least partly, driving this recent pop in high-rise pricing. People are priced out and now searching for substitutes.
So my prediction continues to be that we will see a convergence (i.e. diminishing spread) between new low-rise and high-rise pricing.
That will also bring about design and product changes on the high-rise side.
So this is interesting.
Earlier this month, Travis Kalanick – co-founder of Uber and its former CEO – formed a new venture fund called 10100. According to the WSJ, it was funded with his own money after he sold 30% of his position in Uber for a cool $1.4 billion.
Ten-one-hundred’s spartan website explains that the goal of the fund is “large-scale job creation, with investments in real estate, ecommerce, and emerging innovation in China and India.” On the non-profit side, the initial focus will be on “education and the future of cities.”
Then this week, Travis tweeted out “My new gig…” and disclosed that 10100 had entered into an agreement to buy a controlling interest in a real estate holding company called City Storage Systems (CSS) for $150 million.
He also announced that he would become CEO.
The focus of CSS is on the redevelopment of distressed real estate, particularly parking, retail, and industrial assets. He goes on to say: “There are over $10 trillion in these real estate assets that will need to be repurposed for the digital era in the coming years.”
This whole series of events is a big bet on some significant changes in the real estate space.
Photo by Martin Reisch on Unsplash
Last night I casually asked the Twittersphere what the most important condo amenity is, besides a gym.
That tweet got quite a few responses – everything from rock climbing to a proper facility for realtor lock boxes.
Given the response, I thought it would be worthwhile to be a bit more rigorous in this analysis. So I have created an online survey that you can very quickly fill out by clicking here.
Here’s how this is going to work:
- You have to enter your email address. Sorry, some friction. I figured that would make the data a bit more reliable. Don’t worry your email is safe.
- You can select a maximum of 3 amenities. One of them can be “Other”, in which case you would then enter in an amenity not already found on the list.
- The order of the amenities in the survey is being randomized so as to avoid any possible it’s-near-the-top-and-I’m-too-lazy-to-scroll bias.
- You’ll be able to see the results of the survey after you’ve responded. I’ll also post the results to this blog so that it’s public and people learn things. Individual emails will, of course, never be published.
Developers should be building what people actually want and will use. Now is your chance to tell us what that is. Click here for the survey.
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