Over the past 5 years or so, real estate headlines in the Greater Toronto Area have often focused on the rapid appreciation of low-rise housing. High-rise housing simply wasn’t appreciating at the same rate – at least in aggregate terms.

But 2017 has brought a different story. 

If you look at BILD’s “New Homes Monthly Market Report” (data provided by Altus Group as of July 2017), you can see that high-rise pricing is now on a similar trajectory to low-rise pricing.

Here is that graph:

This sharp uptick in pricing is also apparent when you look at the average price per square foot of new high-rise inventory. As of July, it was $764 psf across the GTA. See below.

At the same time, average unit sizes have also jumped up to 871 square feet. So not only are new high-rise homes becoming more expensive on a normalized basis, they are also getting bigger, which further increases prices.

I recognize that we’re only seeing data up to the end of July, but, from the looks of it, 2017 is shaping up to be an extraordinary year for the condo.

Of course, part of the reason this is happening is because remaining inventory for both low-rise and high-rise product is hitting 10-year lows. We’re back to the topic of supply.

If you’re curious how some of these numbers have changed from the month prior (June 2017), check out this post.

Dezeen recently featured the above project in Philadelphia by Interface Studio Architects. It’s called Powerhouse and the goal was to provide a variety of different housing typologies and tenures within a dense infill project that, at the same time, remains in keeping with its context.

The full block complex contains 31 residential units, which are a mixture of apartments, duplexes (stacked towns), live/work units, and single-family townhouses. There’s also a corner retail space. 10 of the units are rental and the balance are for sale. The development also incorporates 3 existing rowhouses on the block. (Were these the holdouts?)

Here is a diagram from ISA to give you a sense of how these different housing types come together:

The project feels germane to Philly’s urban fabric and it is certainly interesting in its own right. But for those of us from Toronto, it’s perhaps even more interesting because it’s a scale of infill development that we don’t see very often in this city: low-rise intensification. (Also commonly referred to as “The Missing Middle”.)

Recently I’ve been speaking with a number of people about whether or not Toronto should be thinking differently about its low-rise neighborhoods. Because as it stands today, even this sort of gentle density can cause quite a stir. 

Two thoughts immediately come to mind – one of which will not surprise anyone who reads this blog. Firstly, I see laneway housing as an elegant way to intensify low-rise neighborhoods without changing their character. That’s why I’m proposing this house.

Secondly, I have long felt that we should rethink how we treat arterial roads that are not designated as “Avenues.” That is, we should encourage greater densities. An “Avenue” designation signals mid-rise. But absent this, our policies are frankly retrograde, given the way some of these arterial streets have evolved over the years.

What are your thoughts about this scale of infill?

Images: ISA

Laneway housing is back in the news here in Toronto. Last week the University of Toronto reported that they would like to build 50 laneway houses within the Huron-Sussex neighborhood and that they are aiming to start a 2 house pilot project some time in 2018.

Here is a drawing from their Planning Study:

What you see is mid-rise infill (orange) along the main streets and low-rise infill (purple) along the secondary streets and laneways. There’s also a “living lane” that runs north-south through the neighborhood. 

I know we’ve talked a lot about laneway housing and neighborhood intensification on this blog, but I hadn’t seen the above plan before. And I wonder if we aren’t going to look back at this neighborhood plan as a prototype for low-rise intensification.