Maggie Hildebrand's first apartment in Toronto had a kitchen, a dining table, a workspace, and a bed – all in the same 300-square-foot room. It was a decent home at first, close enough to her job downtown and with all the bare necessities for daily living. But it didn't take long for the 28-year-old to feel boxed-in. It was so isolating in that tiny space, she told the BBC. It definitely feels like it's just somewhere to put worker bees during the night.
Ms. Hildebrand lived in one of the city's micro-condos, once a rare sight in Canadian real estate that has become ubiquitous in the last decade thanks to fast-growing, high-rise developments in cities like Toronto and Vancouver. But as Canada's condo market sinks to lows not seen in decades due to market pressures, the value of these micro units is declining faster than any others.
The condo market is experiencing a downturn not seen since the 1980s, with thousands of unsold, move-in-ready units across Toronto. Over the last year, 18 condo projects were canceled in the city, with expectations of more cancellations as demand continues to falter. The downturn has reignited debate on whether developers catered too much to investors by creating smaller, affordable units minimally sized to lower prices in high-value areas.
Investors own the majority of condos under 600 square feet in Toronto, according to national statistics. The construction of these small units soared starting in 2016, making up 38% of new condos in the city compared to just 7.7% previously.
With many micro-condos that sold for half a million dollars a few years ago now reselling for $300,000 or less, real estate experts like Shaun Hildebrand warn it's a race to the bottom to sell these units.
The condominium slump is not unique to Toronto; Vancouver is experiencing a similar downturn. Supply has surged dramatically in recent years to accommodate an increasing population, but the number of newcomers has sharply declined due to new immigration policies aimed at managing the housing crisis, leading to an oversupply of units.
One clear winner from the downturn is renters like Ms. Hildebrand, who found a larger apartment at a slightly higher price. As the market shifts, experts suggest that the focus may move from short-term investors to long-term customers in the condo space. This downturn poses questions about the future of housing supply in Canada as developers pause or halt many constructions, spotlighting the growing urgency of the housing crisis.
Ms. Hildebrand lived in one of the city's micro-condos, once a rare sight in Canadian real estate that has become ubiquitous in the last decade thanks to fast-growing, high-rise developments in cities like Toronto and Vancouver. But as Canada's condo market sinks to lows not seen in decades due to market pressures, the value of these micro units is declining faster than any others.
The condo market is experiencing a downturn not seen since the 1980s, with thousands of unsold, move-in-ready units across Toronto. Over the last year, 18 condo projects were canceled in the city, with expectations of more cancellations as demand continues to falter. The downturn has reignited debate on whether developers catered too much to investors by creating smaller, affordable units minimally sized to lower prices in high-value areas.
Investors own the majority of condos under 600 square feet in Toronto, according to national statistics. The construction of these small units soared starting in 2016, making up 38% of new condos in the city compared to just 7.7% previously.
With many micro-condos that sold for half a million dollars a few years ago now reselling for $300,000 or less, real estate experts like Shaun Hildebrand warn it's a race to the bottom to sell these units.
The condominium slump is not unique to Toronto; Vancouver is experiencing a similar downturn. Supply has surged dramatically in recent years to accommodate an increasing population, but the number of newcomers has sharply declined due to new immigration policies aimed at managing the housing crisis, leading to an oversupply of units.
One clear winner from the downturn is renters like Ms. Hildebrand, who found a larger apartment at a slightly higher price. As the market shifts, experts suggest that the focus may move from short-term investors to long-term customers in the condo space. This downturn poses questions about the future of housing supply in Canada as developers pause or halt many constructions, spotlighting the growing urgency of the housing crisis.
