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Most condominiums in GTA are yet to be affordable, he says
June 16, 2023 | Staff Reporter | Canada | Real Estate
Toronto, the largest city of Canada, attracts people from across the globe for its work prospects and high quality of living. Hence, condominiums are yet to become affordable in most parts of the city. Yet there is a diversity of housing needs and opportunities in the densely populated region of Great Toronto Area (GTA), believes Jim Ritchie, president and CEO of Tridel, the premium condo developing company.
“The one thing about our condo market in the GTA, in my mind, it's not one marketplace. It's made up of many sub-markets that have different needs,” said Jim Ritchie, president and CEO of Tridel in an interview.
Ritchie foresees more high-rise condo development in Scarborough in East Toronto as new transit lines bring more people to the area. “I think Scarborough is another area that we should be looking at, at least in terms of affordability into the marketplace,” he said. Other communities around Toronto, including Markham, Mississauga, Vaughan and Oakville are also seeing more market share, Ritchie added.
Despite about 100,000 condominiums currently being built in the region in addition to tens of thousands of purpose-built rentals, Ritchie said developers aren’t able to meet demand given booming population growth. The squeeze on housing supply has made it difficult to make gains on the shortage of affordable housing options for area residents, he added – a topic of focus and debate for political leaders at all levels of government. Builders may be “too focused” on smaller units that are easier to sell, but don’t necessarily meet everyone’s lifestyle, Ritchie added, though there is demand for smaller condos in the city among single people, couples without children and small families.
For those looking to buy condos, Ritchie said the units offer “relative affordability” compared with detached homes that have been selling at average prices above $1 million – but he still would not describe most condo offerings as “affordable.”
