Friday, May 1, 2015

Condo living will be the new normal in Ontario: BMO - BNN News

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By: Jeff Lagerquist, staff12:15 AM, E.T. | April 2, 2015   Real Estate

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The already expansive price gap between condos and detached housing in the Greater Toronto Area (GTA) will continue to expand towards the end of the decade as new detached development is squeezed against the walls of the protected Greenbelt and overwhelmed by mature millennials looking for backyards.

That’s according to a new study from the Bank of Montreal examining how changing supply and demand dynamics will shape housing in the GTA.

While many point to the rapid build-up of condo inventory as reason to believe Toronto’s market is approaching bubble territory, BMO senior economist Robert Kavcic says those people are ignoring a fundamental shift in where Ontarians will live in the next decade.

“Housing bears often point to a massive number of condo units under construction, which does look dramatic, but fail to appreciate what they can’t see, a dearth of single-detached construction,” said Kavick in the report.

It’s easy to see why landing a lawn and a backyard in Toronto is getting more expensive. At the end of 2014, 57,000 condo units were under construction compared to just 7,200 single detached homes. But the reality of density-focused development is creeping into communities that have for decades served as an affordable oasis for middle class families looking for the suburban lifestyle.

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