The Government Taketh While The Market Giveth

The Government Taketh While The Market Giveth

Did you know that 30% of households with children in Toronto live in condos? Downtown, the statistic jumps to 66%.

According to Tess Kalinowski, a real estate reporter with the Toronto Star, “the number of families with children and teens living in highrise buildings grew by 10,000 or 15 per cent between 2006 and 2011. Yet the average size of a re-sale condo has dropped 20 per cent —1,087 sq. ft. to about 885 sq. ft. between 1996 and 2014.”

This past spring, Toronto City Council approved the initiative “Growing Up: Planning for Children in New Vertical Communities”. Some of its recommendations include:

• Buildings should have a minimum of 25-per-cent large units, including 15-per-cent two-bedroom and 10-per-cent three-bedroom. Those condos should be located lower to reduce elevator dependency, put them closer to amenities and the outdoors.
• Two-bedroom units should be 969 sq. ft.; three-bedroom, 1,140 sq. ft.
• Kitchens should be a minimum of about 97 sq. ft., with sightlines to the apartment. Dining areas should be sized according to the number of bedrooms in the apartment so the whole family can gather at meals, and the rooms should include outlets and storage for electronics.
• Living rooms should have acoustic separations from the bedrooms.
• Children’s amenity space should be proportionate to the number of larger apartments with outdoor common areas protected from wind and shadows. Indoor children’s spaces should be flexible with room for crafts, fitness, homework and music. Outdoor spaces should be accessible from private terraces on the same level.
• Lobbies should include washrooms, stroller storage and be directly connected to common amenities.

How will this affect the market? We believe that this is a positive initiative. As single home prices soar out of control, condominiums become the only reasonable home ownership alternative. As investment in small units by offshore buyers cools slightly due to government efforts to slow escalating prices in Toronto, a new opportunity emerges: building larger condo units for families.

It’s almost as if the government taketh and the market giveth. Growth will not be denied. Family-sized and family-friendly condos provide an alternative to out of reach home prices, allowing people to own a piece of real estate and enjoy all of the carefree advantages of condominium living.