Friday, 20 December 2013

New Condo Sales in Toronto to Be Driven by Household Formation

Household formation is the principal driver of the demand for new condo construction in the Toronto Area. By 2036, between 3.6 million and 7 million new households are projected in Canada, a large portion of this total will be in Toronto, and by the looks of it, there may be some overbuilding in the Toronto market, but at this time, it has yet to result in the feared "Great Toronto Condo Bubble" If this prediction by the CMHC which recently completed the survey, then look out for higher home and condo prices on the horizon and greater density in the Toronto Core.

Some people have stated that the Toronto condo boom has been overplayed and wonder how it is Toronto has far exceed building in the United States almost on a 2 to 1 basis, and then state if Toronto gained nearly twice as many residents as Chicago, Boston, Manhattan, Atlanta, Los Angeles, San Francisco and Miami combined did during 2009-2012, then how is it possible to be building at this rate.

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