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Toronto is flooded with small units, but residents would rather have more space than spas
Published September 16, 2024 • Last updated 12 hours ago • 2 minutes reading time
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There are currently over 120,000 purpose-built rental apartments in the development pipeline in Toronto, but there is still a shortage of smaller apartments.
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Gyms, swimming pools and game rooms have long been standard amenities in condominium complexes, but new data suggests residents prefer private spaces over communal ones.
According to the 2024 Canadian Multi-Residential Satisfaction Study (CMRS) by real estate research firm simplydbs, 62 percent of residents surveyed said they would prefer to live in buildings with larger apartments, even if it meant fewer shared amenities.
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The large-scale study, which surveyed more than 24,000 residents between May and July 2024, revealed a shift in buyer preferences that could serve as a basis for real estate planning and development at a time of increasing housing market pressure.
The preference for larger living spaces is consistent with the results of a separate survey conducted by Devron Developments. The survey found that 47 percent of Greater Toronto Area (GTA) residents now view condos as a viable long-term living option and 53 percent of current condo owners are willing to purchase a larger unit to live longer. Despite this growing demand for larger spaces, Toronto's condo market continues to be flooded with smaller units, highlighting an ongoing supply-demand discrepancy.
The CMRS study also reveals some notable demographic trends. While most age groups prefer larger suites, younger residents between the ages of 19 and 24 are more likely to value amenities over space. Income level also plays a major role in shaping preferences. Residents earning less than $30,000 per year are more likely to prefer amenities, while those with higher incomes generally prefer more space.
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According to a June 2024 report from the City Planning Department, Toronto currently has more than 120,000 purpose-built rental units in the development pipeline, but there is still a shortage of family-friendly housing units. In 2020, the city introduced guidelines requiring 25 percent of new condominium projects to include larger units. — specifically, 10 percent for three-bedroom apartments and 15 percent for two-bedroom apartments. However, many developers fail to meet these targets and instead opt to build smaller, cheaper housing units to maximize their profits.
The discrepancy between what buyers are looking for and what developers are offering is further highlighted by figures from the Toronto Regional Real Estate Board (TRREB). TRREB reported an 80 per cent increase in active condo listings in June 2024 compared to the same period last year. This trend continued in July, with a 64 per cent increase in listings compared to the same period last year. The number of active condo listings reached 8,979 in July, up from 5,416 in July 2023. While the supply of condos continues to rise, demand for larger units remains unmet, leaving many potential buyers without the space they need.
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Devron says developers must adapt their strategies to meet rising demand or risk neglecting a growing portion of the market. If the supply of smaller units continues to outstrip that of larger condos, developers will face further challenges in the coming years.
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