Yesterday it was announced that, starting January 1, 2015, the Ontario Building Code would be changed to allow wood frame buildings up to six storeys. Previous to this, the highest you could go was 4 storeys.
This change has been in the works for a number of years. And it’s already allowed in most of Europe and in other places in Canada, such as British Columbia. So it’s nice to see this finally happen here in Toronto.
The reason this is a big deal, and worthy of a blog post, is that it changes the cost structure for mid-rise buildings. Simply put, wood frame buildings are cheaper to construct compared to reinforced concrete and other buildings materials.
Some people think this just means developers will make greater returns. But I don’t think that’s the case (see microeconomics). The real opportunity here is to spur mid-rise development on sites that – before this change – would have been previously un-developable. That is, you just couldn’t make the numbers work.
As much as mid-rise buildings make a lot of sense from an urban design standpoint, it’s not always easy to find good mid-rise development sites. Mid-rise buildings are generally less efficient to build compared to towers and you have a lot of fixed costs that don’t scale down just because you’re doing a smaller project.
So what this change in cost structure will, hopefully, do is allow more product to enter the market. And since many big urban centers operate with perpetual supply deficits – precisely because it’s often so hard to build – this should actually help with affordability.
The area that stretches between the property line on one side of a street and the property line on the other side of a street is called a public right-of-way here in Toronto. It may be called something different in other cities and countries.
In the example below (taken from Toronto's Avenues & Mid-Rise Buildings Study), it includes the sidewalks, the car lanes, and the streetcar lanes. But it could also include other public elements. In this instance, the buildings on either side of the street are assumed to be built right up against their property lines.
ROWs obviously serve an important public function. But their size also has important urban design implications. As a pedestrian, it feels different to walk on a narrow street than it does on a broad street.
The width of a ROW can also be used to inform what the preferred height of the buildings along it should be. In the example above, they’re talking about a 1:1 relationship between the width of the ROW and the preferred height of the buildings.
Given their importance, I thought it would be interesting to share this map of Toronto (dated 2010) showing ROW sizing throughout the city. The mustard colored lines in the core of the city represent 20 metres, the red lines 36 metres, and the purple lines 45 metres or more. The rest of the colors fall somewhere in-between. For the most part, the purple lines represent highways, although there are a few other instances of purple.
What’s interesting – but not surprising – to see is how we basically kept expanding the size of our ROWs as Toronto grew outwards. This was obviously to make more room for cars on the road.
But the other, perhaps more interesting thing about this map, is that it could also serve as a guide to pedestrian happiness. The mustard/yellow lines are where it’s most enjoyable to walk. And the red and purple lines are where it’s least enjoyable to walk.
If you’re from Toronto, give this framework a try and see if it holds true.
A few weeks ago I was invited by Toronto realtor Andrew la Fleur to participate in his True Condos podcast series. I had actually never met Andrew before in person, but I knew of him because of Twitter, his blog, and because he was an early user of my past startup, Dirt.
I was initially a bit apprehensive about being on a realtor podcast, because I thought it might end up as some sort of cheesy marketing piece. But I’ve come to learn that Andrew is not that kind of guy. He’s also interviewed some really great people in his podcast series (here’s the full list), so I feel honored to have been invited.
I’ve embedded the podcast below, but if for whatever reason you can’t see it, click here to be redirected to Andrew’s site. We talk for about 30 minutes, with a big focus on openness and transparency in the real estate industry. Thanks again for the invite Andrew. It was great to meet you in person.