Friday, 20 December 2013

New Survey Reveals that 19% of Condo Owners in Canada are Under the Age of 35

A newly released report by the Canadian Home and Mortgage Corporation has revealed that 19% of Condo owners across the country are young people under the age of 35. Somewhat remarkable given that the general consensus has been that condos are being purchased by older wealthy overseas individuals. The report is likely to put cold water on the theory that is these international investors that are driving the growth of the housing industry in Toronto, and other cities across the country. The quote from the report below is as follows:

  • According to the recently released 2011 National Household Survey 19% of condominium owners in Canada were under the age of 35 and 29% were seniors 65 or older. Women made up 65% of condominium owner-occupants who lived alone including 76% of those aged 55 and older (see attached backgrounder for additional information on the condominium share of the homeownership market for selected centres in Canada)

What do we make of this new information. 

 But assuming new condo construction and population gains have a 1:1 relationship. Increased condo supply can be absorbed by thing like decreasing household size which causes an increased need for individual homes to house the same population. There may have been many households with multiple residents (either room mates, parents with adult children, etc.) 

 Besides. are most of those cities even growing significantly within their city limits? We know for sure that Chicago isn't, and SF and Boston have been retreating from their historic highs for a number of years. We know they're growing in their metro areas, but much (most?) of that growth would not be in the form of condos. And perhaps the other cities had more rental apartment construction than Toronto. And we also know there were a number of years preceding the boom in which Toronto didn't really have significant condo construction despite its growth. So there was likely lots of pent up demand for condo development to occur.

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