Delphine Winton recently relocated to an apartment near Casa Loma, constructed in 1936, and she is thrilled with her decision. In her search for a new residence, the 22-year-old student specifically targeted older buildings, avoiding modern condos with sliding glass doors, generic layouts, and unconventional floor plans she found unappealing. “God forbid there’s enough space for a dining table,” she shared with CBC Toronto.
Winton is not alone in shunning newer developments, with other Toronto residents also opting for older accommodations due to factors such as the absence of rent control and subpar layouts, amidst a time when tenants are gaining more influence in the housing market. Nicole Luongo, a 36-year-old policy analyst, recently leased a unit in Little Portugal that is nearly a century old, citing her preference for the charm and livability of older spaces, along with their affordability.
According to a recent report from the Canada Mortgage and Housing Corporation (CMHC), purpose-built rental units are facing prolonged leasing periods due to heightened competition from the secondary market. While rental prices in older buildings are starting to align with those of new constructions, affordability in expensive markets has led many renters to opt for older properties to achieve modest savings.
Samantha Dangubic insists on having rent control as she searches for a larger residence for her and her partner in Ontario. She highlighted the limitations on rent increases for buildings occupied before November 15, 2018, contrasting them with significant spikes experienced by tenants in newer developments. Dangubic questioned the target demographic for these new condos, considering the trend where a majority of Toronto condos built from 2016 to 2020 are utilized as investment properties.
David Fleming, a real estate expert, attributes the trend of shrinking condo sizes in recent years to developers aiming to maximize unit density while keeping prices stable amid rising construction costs. This shift has resulted in inadequate living spaces geared towards investors rather than tenants, as illustrated by the diminishing square footage of condos built post-2016 compared to those from earlier decades.
The evolving rental market in Toronto has allowed tenants more flexibility in their choice of living spaces, with the average rent for one-bedroom units decreasing from the previous year. Real estate agent Alex Zhvanetskiy observed a cautious approach among renters, who are increasingly avoiding newer developments due to issues like inadequate layouts and rent control limitations.
Developers appear focused on catering to investor demand for smaller, cost-effective units, rather than prioritizing the preferences of potential tenants. Fleming emphasized that developers are constrained by the pre-construction sales market, where larger units are less favored by investors seeking maximum affordability. Restricting the construction of ultra-compact condos, as suggested by some, could potentially hinder new developments in Toronto, according to Fleming.
