Tag: multi-family

• Why multi-family developers are shifting their customer focus

  One aspect of the Toronto housing market that I’ve been paying close attention to is the adoption of multi-family dwellings by both long-term end-users and families. 

  I’ve written about this before (here and here, over a year ago) and have argued that here in Toronto we are at an inflection point. Multi-family dwellings – both rental and condo – are evolving to now target these new customer segments. Whereas previously, the new construction multi-family housing market was heavily geared towards investors and first-buyers. And often it was simply a stepping stone towards a single family home.

  Now, every city and real estate market is different. And I have heard many people in U.S. cities say that Millennials are simply deferring what we saw with previous generations. At the end of the day they (or we, I’m a Millennial) are going to move to the suburbs and buy that car. The current trends we are seeing around city living and reduced driving are just that – short-term current trends.

  But I think it’s worth reiterating: I do not believe that the status quo is what’s happening right now in Toronto. And I’m sure it’s also happening elsewhere. Time and time again I speak to developers in this city who are starting to shift at least some, and in some cases all, of their focus towards end-users, families, and larger units – particularly for new mid-rise product in the “neighborhoods.”

  And if you think about it, this makes perfect sense. 

  The average price of a detached single family house in Toronto is well north of a million dollars. So when a developer brings to market a 1,200 sf family sized apartment at $600 psf ($720,000) or even at $700 psf ($840,000), that home now becomes a relatively “affordable” option in many desirable areas of the city. Particularly if you value location amenities and your time (i.e. shorter commutes) over raw quantity of space. I know I certainly do.

  I know this isn’t going to appeal to everyone. But there is a big market here. Get ready.

  What are you seeing in your city? Let us know in the comment section below.

  2015.12.15

• Condo building identities according to Instagram

  I am very interested in the social side of buildings. What I mean by that is that we usually focus on the quantitative side. We look at sale prices. We look at average prices per square foot. We look at reserve fund balances. And as I recently argued, this is all very important stuff. I think we should do much more to make this data publicly available.

  But there’s also a side to buildings that’s harder to measure: the human side. Sale prices and staged MLS listings don’t tell you what the people who live in the building are like. What the vibe will be like at the pool during the summer. If you can expect to find dog poo in your elevators. But when you live in a multi-family building, I think most people will tell you that the qualitative side also matters.

  So this morning, I thought I would run a little experiment and pull the top Instagram photos for a random sampling of relatively new condo buildings in Toronto. These are public photos that have been uploaded and tagged with that building’s location ID. 

  Obviously there’s an inherent bias since I figure Instagram users probably lean towards Millennials. Also, the top posts could be easily skewed by a small number of heavy influencers. But I still thought it would be interesting to see if any particular identities started to emerge. And I do see some differences that reflect what I would have expected. I wonder how these might relate to the original marketing for the buildings.

  What do you think of the photos below?

  Feel free to do the same for your building and post the photo in the comments below. That could make for a really interesting discussion. My building is the first photo.

  

  2015.11.07

• A new chapter

  

  St. Lawrence by Ralph Sobanski on 500px

  I have an announcement to make on Architect This City today.

  Next week I’m joining the development team at CAPREIT (TSE: CAR.UN) here in Toronto. CAPREIT is one of Canada’s largest residential landlords. They are a growth-oriented real estate investment trust with over 41,839 residential units in major urban centers across both Canada and Ireland.

  They also happen to be headquartered in the St. Lawrence Market area, which means I now live and work in the same neighborhood. As we discussed here, location matters a lot.

  So here’s to a new chapter. I’m looking forward to diving into the multi-family business. Change is good.

  2015.05.04