speculation lately regarding the Toronto Condo Market, and whether it is a bubble or not. We’ve been hearing time in and forever, about this market crash in the real estate market here, which has yet to materialize.

How Many Towers Built is the Norm for Toronto ?

There has been a great deal of speculation lately regarding the Toronto Condo Market, and whether it is a bubble or not. We’ve been hearing time in and forever, about this market crash in the real estate market here, which has yet to materialize. Now, I remember, back in 2003 at the beginning of the Condo boom, even then, people were mumbling that the condo construction then could not be sustained, those voices got louder in 2006-7 and of course they have hit their peak since 2010, when there has been nothing of bubble talk for over 3 years now.

One Thing you must keep in mind with regards, to Toronto is that our population GTA wide increases at a factor of 100,000 per year.  And a great deal of that growth occurs within the downtown core, a downtown core which is bracing itself for increased pressure on it’s transit and social service infrastructure.  If we were to say that of the 100,000 people that move to the GTA area, 30,000 of them moved into the core, how many condo towers and of what height would be required. If we gauge, that a condo of 40 to 60 floors has 500 units, and of those units there will be 800 residents we can calculate we will need  40 to 50 towers of that size to accommodate that additional population, assuming that all those new residents choose highrise accommodation. (somewhat unlikely) 

Compared against the historic norm for Toronto, which is roughly 35 to 40 buildings (highrises) being completed on a yearly basis, the rate of building presently is not out of proportion at all. However, I will not that at current, we are building a lot taller, just due to government growth policies, and higher numbers of people moving to the area.