# Current state of Toronto's new condo market

By [Brandon Donnelly](https://brandondonnelly.com) · 2019-12-03

ben-myers, big-ben-myers, buzzbuzzhome, construction, construction-costs, development, hard-costs, housing, housing-market, new-condo

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[Ben Myers](https://twitter.com/benmyers29) of [Bullpen Research & Consulting](https://www.bullpenconsulting.ca/) was recently [interviewed by Newinhomes.com](https://www.newinhomes.com/blog/the-average-price-of-a-new-condo-in-toronto-could-surpass-1600-psf-in-five-years) about the state of Toronto's new housing market. Ben is always interesting. And these are the sorts of things that I read in my spare time. So here's an excerpt:

> _The average price of popular new condo floor plans in the City of Toronto in October 2019 was approximately $1,275 per-square-foot (psf) and with growth of 3% a year, prices would hit $1,475 psf in 2024. I wouldn't be surprised to see annual average growth of 4%, which would get you to $1,625 psf in five years in Toronto._

This data was taken from [BuzzBuzzHome](https://www.buzzbuzzhome.com/) and -- by "popular new condo floor plans" -- I believe he means that these are the floor plans that buyers tend to click on and review when they visit the site. So it's a good indication of buyer demand.

Here's another quote that stuck out:

> _Part of the reason that price growth has spiked is a rise in construction costs, development charges, and land prices - this cost-push inflation is passed on to consumers._

That sounds right. And I have been [writing about this phenomenon](https://brandondonnelly.com/2019/02/01/cost-plus-pricing/) all year. Most of us can probably remember when $1,000+ psf was a high water mark for new construction condos. Now it's pretty much a floor.

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/current-state-of-torontos-new-condo-market)*