Tag: toronto

• Airbnb is powering new purpose-built short-term rental buildings

  This past weekend I was in a condo building here in Toronto with large signs in the elevator saying, “No Short-Term Rentals Including Airbnb Are Permitted. Trespassers Will be Prosecuted.” It was the first time I had seen anything like this, but it immediately signaled to me that the building must be having a problem with short-term rentals. Why else would you deface the elevators? There are some buildings that allow short-term rentals, but most don’t.

  However, over the last few years we have started to see purpose-built short-term rental buildings. In some cases, existing apartments buildings were “converted”, as was the case with Niido’s two properties in Nashville and Orlando. Here tenants in the building can rent both unfurnished and furnished apartments and then rent them out on Airbnb up to a maximum of 180 days per year. To date, I think these are the only two properties to use the “Powered by Airbnb” moniker, but more are on the way.

  The developer behind Niido — Newgard Development Group — recently launched a new Powered by Airbnb brand called, Natiivo. This one looks to be focused on for sale product, with two upcoming projects in Austin and Miami. Both projects will have hotel licenses in order to avoid any regulatory risk going forward. But this makes me wonder how materially different this model is from the condo-hotels we’re already familiar with.

  For landlords and developers, the goal is obviously to maximize rents and prices. Allowing (or explicitly encouraging) residents to rent out their place and earn some extra cash, should help with that. And given the way I started this post, we also know there’s a desire to do this, particularly in places with strong tourist demand like in Nashville and Miami. But the reviews are mixed. Not everyone wants to live in a hotel. But then again, not everyone wants to co-live. To each their own.
  

  2019.09.24

• Using tweets to measure social connectedness in cities

  This recent study used geotagged tweets to measure social connectedness within American cities. There are two measures: (1) concentrated mobility and (2) equitable mobility. The first measures the extent to which social connections (geotagged tweets) are concentrated in a set of places within the city. And the second looks at the degree in which people move between neighborhoods in roughly similar proportions. These measures are the y-axis and the x-axis, respectively, in this graph:

  

  So how do you read this chart?

  Well if you look at New York, you’ll see that it is relatively high in concentrated mobility, but the lowest in terms of equitable mobility. This means that social connections are highly concentrated and that there’s low connectedness to other neighborhoods within the city. Miami, on the other hand, is the opposite. It’s also an outlier. Few hubs. But its social connections appear to cross neighborhoods and spread across the city.

  Perhaps not surprisingly, the study found that the size of a city seems to have the biggest impact on social connectedness. Which makes sense — it becomes harder to get around and so people start to localize. I am reminded of this whenever my friends in Los Angeles tell me they never go to the beach because it’s simply too difficult and too time consuming to get across the city.

  This also became clear to me after I started playing around with the Moves App back in 2015. The app no longer exists, but it was an activity tracker that allowed you to map where you, well, moved. And the more time you spent in one place, the more concentrated the activity would become. They depicted this through larger and larger circles. Example maps, here. My maps revealed that I need to branch out into different neighborhoods more often.

  To download a full copy of the study, click here.

  Chart: CityLab

  2019.09.20

• The 50 coolest neighborhoods in the world

  

  There’s a stretch of restaurants and bars on the south side of King Street, west of John Street, here in Toronto, that I generally try and avoid. I won’t name names, but if you’re from Toronto, you know what I’m talking about. With all due respect to the business owners, I think of this stretch as tourist row. All cities have them. Usually the identifying marker is a human on the street with a menu trying to entice you to come inside and eat. And there’s nothing wrong with that. I can appreciate good street hustle.

  But whenever I’m traveling and trying to find a place to eat, I’ll often think to myself, “Oh man, is this the (insert city name here) equivalent of tourist row? I see people on the street with menus in their hands. Could be.” This is one of the reasons why I like Time Out’s recent “definitive list of the planet’s cultural and culinary hotspots.” They surveyed over 27,000 city dwellers in order to figure out where locals actually want to hang out. The result is the 50 coolest neighborhoods in the world.

  I am somewhat embarrassed to say that, I think, I’ve only been to 6 of them. I have work to do. But Toronto does make the list — once — and it is none other than the Junction. Their recommendations, here. However, one thing they did miss was the Union Pearson Express. That is the way to get to the Junction from Union Station and it is, clearly, still under the radar for most. The number one spot on their list goes to Arroios in Lisbon, which is actually beside where I stayed when I was there this summer. Damn that city is cool.

  For the full list of neighborhoods, click here.

  Full disclosure: I am not a neutral observer. We are developing in the Junction. And I am moving to the Junction (and trying to pretend to be cool).

  2019.09.18

• Fees on homes

  A colleague of mine sent me this Bloomberg article today and said, “Here’s an article about things you already know.” The article cites a recent report by Altus Group that compared government-related fees on new housing across Canada and the U.S. What they discovered will not surprise any of you who are in the industry: Toronto has some of the highest government-imposed charges on new homes.

  

  For new condo apartments, the report found that government charges can add up to as much as C$124,582 per unit. That’s about 50% higher than the average unit in the U.S. and about 30% higher than the average unit in Canada (see above chart for the list of cities). While all of us in the industry can appreciate this, I don’t think most homeowners and tenants understand this. Hopefully they’re reading this post.

  Chart: Bloomberg

  2019.09.17

• Suburban household debt in Canada

  

  Rachelle Younglai and Chen Wang’s recent piece in the Globe and Mail on suburban household debt (in Canada) has a number of interesting stats. Here are some of them:

  • Looking at debt service ratios across the country, the most financially stressed neighborhoods in Canada are almost exclusively in the suburbs. (Map of the Greater Toronto Area shown at the top of this post. Data from Environics Analytics.)
  • 34 of the top 100 most financially strained neighborhoods in Canada are located in Brampton, Ontario.
  • Brampton has grown at 2x the rate of Toronto over the last decade.
  • 43% of Brampton’s housing was built between 2001 and 2016.
  • 80% of homeowners in Brampton have a mortgage compared to 63% across the Toronto region as a whole.
  • 80% of Brampton’s property tax revenue comes from residential property (not surprising). In comparison, 47% of Toronto’s property tax revenue comes from commercial properties.
  • About 2/3 of Brampton’s work force leaves the city for their job. This makes sense given the above point.

  The other thing the article talks about is the increase in the average household size in many suburban communities as a result of people renting out parts of their house.

  One Brampton gentleman is quoted as saying that he rents his basement out to 3 or 4 students and his upstairs bedrooms to two truckers. This translates into typically 6 vehicles parked in his driveway.

  Assuming this is the trend, I wonder how much of this additional income is being reported to CRA. Because if it’s not, then it could be throwing of these debt ratios and making the financial situation look more dire than it is.

  In any event, I think this speaks to, among other things, the role that many suburban communities now serve for new immigrants coming to Canada. They are doing what they can to try and get ahead.

  It’s also worth noting that if you look at the above map of the Greater Toronto Area, the lowest “debt spots” are in fact where homes tend to be the most expensive — the core.

  Map: The Globe and Mail

  2019.09.15

• The Yonge line

  On September 8, 1949, Toronto held a groundbreaking ceremony at the intersection of Yonge & Wellington to celebrate the start of construction for its very first subway line. (Formerly known as the Yonge line, now called line 1.)

  The scene looked like this:

  

  

  Some of the buildings in these pictures still remain, but many do not. The first picture is looking north. And the second one is looking south toward the lake. You can see the rail corridor in the background.

  There’s something very urban about these images. The storefronts look active and the streets are full, though no one appears to be live tweeting the event and this clearly pre-dates Toronto’s transformation into the most diverse city in the world.

  But my favorite bit of these photos is the people hanging out on the exit stair, watching the march toward modernity. It’s an image that no longer correlates to Toronto.

  Images: Toronto Archives

  2019.09.09

• The new decentralized workforce

  

  A few weeks ago the WSJ published an article about Toronto’s growing tech talent pool, arguing that its base now rivals the top US cities, but that it may not be an entirely good thing for the city’s ecosystem. I wrote about it here.

  This morning venture capitalist Fred Wilson published a post on his blog talking about the necessity of scaling tech companies in lower cost locations. It’s a good follow-up to the above article/post.

  Here’s an excerpt from Fred:

  Last week I heard some shocking numbers about salary levels for certain kinds of engineers in the bay area. I checked them out with a few of our bay area portfolio companies and they were more or less corroborated.

  The tight technical labor markets in the bay area, NYC, and a number of other regions in the US are making it hard to scale software businesses without burning massive amounts of cash.

  He goes on to argue that (startup) companies now need to think about scaling in other/remote locations sooner than they ever have before — basically as soon as the company hits about 50 engineers (or 100-200 employees).

  Many companies are now working with a distributed workforce. Supposedly 2/3 of the global workforce now spends at least one day of the week working remotely. I almost never work from home, but I do get how this is possible.

  So what is happening is that engineering talent is spilling over into secondary markets out of necessity. There’s an economic imperative to colonize. But I would imagine that, at least initially, most of the economic benefits accrue to the colonizer.

  Photo by NASA on Unsplash

  2019.09.01

• Statistics Canada publishes its wastewater-based estimates of drug use

  In March 2018, Statistics Canada launched the largest “wastewater-based epidemiology pilot test” ever conducted in North America. Over a 12 month period, it collected wastewater samples across the country in order to test for traces of cannabis and other drugs. The pilot captured 8.4 million people in Vancouver, Edmonton, Toronto, Montréal, and Halifax. And it was allegedly timed to coincide with the legalization of cannabis in Canada on October 17, 2018.

  This week Statistics Canada published its findings. While the study does cover over 8 million people, it was not intended to be representative of the entire Canadian population. Some sites, such as Vancouver, had nearly complete coverage of the metro area population. While others, such as the Halifax site, only covered about half of the metropolitan area. In any event, the findings are interesting.

  

  Above is one example: methamphetamine load per capita for the five study cities. The y-axis is grams per million people per week. And the time period is, again, March 2018 to February 2019. Average levels for Edmonton and Vancouver were found to be about 3.7x higher than those in Montréal and Toronto. There was also no apparent seasonal/monthly variation, which is something else they looked at.

  Here I learned that a large portion of this drug passes through the body unchanged. And so the concentrations they discovered in wastewater is likely a fairly direct indicator of consumption within the population. Stats Canada is still reviewing its findings and evaluating this approach to collecting large scale urban data. But I am certain we’ll be seeing more of these kinds of urban studies.

  Chart: Statistics Canada

  2019.08.28

• Small art museum (in Tokyo)

  Few are able to do “small houses” quite like the Japanese. Below is the Flat House in Tokyo by Yoshinori Sakano Architects. Completed in 2011, it was designed for a young couple in their twenties who wanted to build a home that was like a “small art museum.” Looking at these photos, I bet many of you will be surprised to know that the site area is only 100.10m2. The building footprint is only 49.00m2. And the total floor area is 79.36m2. This is the kind and scale of housing that is now permissible on many of Toronto’s laneways. And here, in Tokyo, you can see that it is serving as a family home. (The working kitchen is quite a contrast with the rest of the house.)

  

  

  

  

  

  Photos: Takumi Ota

  2019.08.27

• Der Wickelfisch

  A colleague in the office recently introduced me to a Swiss invention called the Wickelfisch (or baby fish). Below is a video showing you how they work. They’re so neat. So Swiss. And I obviously just ordered one. They’re available via this US company for $12-20, depending on the size.

  The video is of people swimming in the Rhein. Because swimming downstream in rivers — and ending up in a different location — is so popular in Switzerland, the Whickelfisch was invented as a way to keep your clothes and belongings dry. It also acts as a flotation device.

  I’m not planning on floating down the Don River anytime soon, but a Wickelfisch looks like the perfect bag to bring to the beach. Especially if you don’t want to leave your stuff unattended to while you go for a swim.

  Of course, the other neat thing about this video is that it shows you how awesome it is to have clean and swimmable water running through the middle of a city. Most people I know are afraid to swim in Lake Ontario out of fear they might grow a 6th toe.

  That’s too bad.

  2019.08.21