by Nutan Brown
on Wednesday, March 2nd, 2022 at 10:18am.
After the first 2 months of the new year, the Toronto condo market is already showing signs that it will be stronger than 2021 - and may even break records.
While some predicted a stagnant condo market to start off 2022, those predictions never really happened as developers, realtors, and homebuyers noticed an uptick in the demand for housing.
One of the main reasons is affordability. With an increase in demand for detached homes, many first time buyers will be pushed to more affordable housing such as condos. We can expect this demand to increase as we move into the spring.
Immigration is another driver of the condo market. Despite the pandemic, Canada welcomed a record-number 401,000 new permanent residents in 2021 and that number could edge closer to 411,000 in 2022 to meet the government’s ambitious immigration targets.
According to Statistics Canada, immigrants tend to buy homes in large urban centres like Toronto. Statistics Canada is also projecting we will welcome over 1 million international students in 2022, 49% of which are at the university level and in dire need of rental accommodations. Proximity to the core and universities are two of the main reasons new immigrants love urban centres, and these two reasons alone will bring extra demand to the market.
For homebuyers who can't afford a condo in Toronto, pre-constructions have become a popular alternative. Given the flexible payment structures offered by developers and the longer completion time, those who have abandoned the resale housing market still have hope.
Stay tuned for my next market update to find out how the condo market has performed over the last month. Contact me if you have any questions!