Delphine Winton recently moved into an apartment in Castle Loma built in 1936, and she hasn’t looked back.
During her search for a new space, the 22 years student wAs you strictly look for older buildings, choose to stay away from sliding glass.ors, lack of “character” and strange floor plans.You see it in newer condos.
“God forbid you have enough space to put a dining table,” he told CBC Toronto.
Winton is not the only Toronto resident opting not to move into new construction – for reasons ranging from a lack of rent control to poor designs – at a time when tenants are increasingly gaining influence in the market.
Nicole Luongo, a 36-year-old policy analyst who just signedned a lease for a unit in Little Portugal that “is over 100 years old,” he says he found the sterility of the new units off-putting.
“[I] “I was also looking for a suitable size, a design that looked livable and not claustrophobic,” he said.
For her, the affordability of an old place was also an important factor.
New purposeMass-built rental units are taking longer to lease due to increased secondary market competition, a study finds. July report from the Canada Mortgage and Housing Corporation (CMHC).
Although CMHC data shows that rental prices in older buildings are starting to catch up with newer ones, affordability in expensive, tight markets has deteriorated so much that many renters are settling for modest savings “by choosing older properties,” according to the CMHC report.
‘Who are these condos for?’
In addition to wanting a larger layout, having rent control is a must for Samantha Dangubic as she looks for a larger place to live with her partner.
In Ontario, owners of buildings that were first occupied before November 15, 2018 are limited in how much they can increase the rent each year.
“Some friends who tried the newer versions received a raise of around $500,” Dangubic said.
“No one is able to pull that off these days, which really makes me curious who are these condos for?”
More than half (55.2 per cent) of Toronto condos built between 2016 and 2020 were used as investment properties in 2020, according to a study by the Canadian Housing Statistics Program.
That figure drops sharply for older buildings: 40.1 percent for condos built between 2001 and 2015 and 24.1 percent for condos built in 2000 or earlier.
According to David Fleming, a Toronto-area real estate broker and blogger, apartments are increasingly seen as investments rather than homes to live in, and it’s one of the main reasons behind poor distribution.
He said that in the last decade, developers began downsizing their condos, aiming to include as many units as possible while keeping prices the same, as construction costs have skyrocketed.
While pointing to a floor plan of a new 267-square-foot condo, he said, “This was only built so an investor could buy it, so the developer could get pre-construction financing. And that’s why these units exist.”
“I think when you extend your bed, which right now is a sofa bed, you can probably open the refrigerator with your toes,” Fleming said.
“I think it really speaks to the fact that we literally live in a shoebox.”
Condos in Toronto built between 2016 and 2020 are approximately 400 square feet smaller than those built between 1971 and 1990, when looking at their average size. according to Statistics Canada — and fewer investors are rushing to buy them.
Only 53 new condo units were sold in Toronto in September, new BILD data sample.
Bad market gives renters more options
The rental market is also changing. Starting in October, The average rent for unfurnished one-bedroom units in the city was about $300 less than in October 2023, according to Liv Rent, a Canadian online rental platform.
The state of the market means renters may be more picky about the space they choose to live in, said Toronto real estate agent Alex Zhvanetskiy, who has also noted thatInterested parties opt out of some newer construction, citing lack of rent control and poor layout.
“They are moving much more cautiously,” he said. “They don’t have to act so quickly. They have a lot more options.”
As condo vacancies in the GTA reach record levels, many owners with small portfolios have been left struggling or leaving the industry altogether.
Some new apartment owners are trying to offer incentives, such as a month’s free rent, to make sure they attract tenants. But do developers care if tenants like what they build?
For Fleming, it’s a resounding no.
He says developers can only build what they can sell before construction, and larger units simply aren’t as popular with investors, who often look to buy the cheapest units possible.
“If the city stepped in and said no more 267-square-foot condos, I don’t think, in fact, I know. — Nothing would be built in Toronto,” Fleming said.
