Mick O’Brien had longed to live in downtown Toronto to enjoy city life, support the Blue Jays, and attend cultural events with his family. However, finding a suitable condo was challenging for the couple who currently reside in a spacious three-bedroom home in Bradford, Ontario. The shrinking condo sizes in the city posed a problem, with many units being too small or outdated. O’Brien expressed concerns about the high costs associated with purchasing a larger condo and renovating it to meet their needs.
Recently, O’Brien and his wife secured a condo in the upcoming 101 Spadina development in Toronto’s entertainment district. The unit features two bedrooms, 800 square feet of space, and 10-foot ceilings. They acquired the property for $1.7 million during a pre-construction sale, with an estimated move-in timeframe of six years.
The average size of condos built between 2016 and 2017 was 665 square feet, significantly smaller than those constructed in the 1980s and 1990s, which averaged over 1,000 square feet. Devron Developments, the company behind O’Brien’s new condo, aims to introduce a shift in the market by offering predominantly 800-square-foot units with two bedrooms at 101 Spadina.
John Pasalis, a Toronto real estate broker, explained that the trend of shrinking condo sizes was driven by affordability concerns, making smaller units more accessible to first-time buyers and investors. However, the market dynamics shifted as interest rates rose, leading to a surplus of small condo units for sale. This surplus prompted buyers like O’Brien to seek larger living spaces.
In response to changing market demands, developers are reevaluating their construction strategies. Devron’s latest project reflects a shift towards creating better-built condos that cater to residents’ lifestyle needs. O’Brien views his new condo as a pivotal part of his retirement plan, offering a downsized but spacious setting for hosting family gatherings.
Jeremiah Shamess, an executive vice-president at Colliers, acknowledged the challenges and costs associated with constructing buildings with a higher proportion of larger units, particularly three-bedroom layouts. Nonetheless, industry experts like Shamess see initiatives like Devron’s as a potential blueprint for future developments, prompting other developers to consider similar strategies.
To address the demand for family-sized units, Pasalis emphasized the need to lower construction costs. This includes revisiting expenses related to construction and municipal development charges in Toronto, as well as potential government incentives such as the removal of HST on new housing purchases. Pasalis stressed that reducing costs is essential for developers to offer a diverse range of housing options that meet the needs of end-users.