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Globe and Mail
4 days ago
- Business
- Globe and Mail
Toronto developers cancelling preconstruction projects and the Home of the Week: Canadian real estate news for the week of July 18
This week, we're looking at the cancellation of condo developers' preconstruction projects due to low demand in some Canadian markets. Plus, the Canadians waiting until their 40s to buy their first home, and one property worth a look. Take The Globe's business and investing news quiz Sales in Toronto's preconstruction market slid to their lowest level in three decades this quarter, and the lack of buyers is leading some developers to delay or cancel new planned projects. As Rachelle Younglai writes, there were 502 sales of new condos in the Toronto and Hamilton area in the quarter that ended June 30, according to a report released Tuesday by industry research firm Urbanation Inc. That was down 10 per cent from the first quarter of this year and marked the lowest activity since 1993. 'The market has gone from bad to terrible,' Urbanation president Shaun Hildebrand said. 'If you have the resources, it is a good time to buy resale (homes that have already been built) because there is very little competition in today's depressed market,' Younglai said. But added that preconstruction could still be a good option if you're able to wait a few years to move in. Meanwhile, Metro Vancouver is feeling the same sting, as buyers walk away from presale purchases, lenders increasingly foreclose on a wider variety of properties, and inventory of unsold units continues to rise. As Kerry Gold writes, struggling developers are doing their best to keep their names out of the headlines, which means they are reluctant to sue when a presale buyer of a luxury condo walks away from their deposit. Canadians in their 20s and early 30s are shunning traditional paths to adulthood, instead focusing on travel, education and career growth – and saving buying a home for later in their lives. Hindered by expensive housing, a growing number of Canadians are buying their first home later in life – into their 40s and beyond, a time traditionally used to save for retirement. As Zahra Khozema writes, a big part of what's driving this trend is the relentless rise in home prices. According to the Canadian Real Estate Association, the average home now costs under $700,000 – nearly quadruple what Statistics Canada listed in 2000. Meanwhile, in the same time period, annual individual income saw a relatively modest increase of $10,000, up to $59,400. Even with a recent dip, home prices remain far above historical levels, having peaked at more than $800,000 in 2022. Read some of these new homebuyers' stories here. Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday, July 17. On June 25, Toronto city council voted to modify its planning bylaws to allow multiplex buildings with five or six units in parts of downtown and one ward in Scarborough, while stopping short of allowing them in the whole city. But, as Shane Dingman writes, the updated bylaw also established a new formula for the number of bedrooms allowed in any 'plex' application – with the exception of the duplex, all other sizes can only have a maximum of three times the number of units in the building. Toronto Councillor Shelley Carroll was a key proponent of the bedroom cap during the city hall debate, saying on the council floor that a 2023 citywide rollout of fourplexes 'had not gone well.' She cited an application in her ward where she asserted a builder had attempted to build '30 bedrooms on one single family dwelling lot.' The city's planning department had flagged five projects as possibly being 'multi-tenant houses,' also known as rooming houses, which are regulated differently in the city. The city later told The Globe that Councillor Carroll had misspoken – the application she meant was a lot split with laneway suites that added up to 24 bedrooms. 'The implication of the cap is there is rampant explosive bedroom growth in Toronto that must be contained, while their own data shows barely two per cent went 'above' the cap they defined after the fact,' Dingman told me. 'The second presumption is more bedrooms is a problem but what are we talking about? More places to live? Does anyone think we have too many places to rent in this city?' 12 Tetbury Cres., Toronto – Full gallery here The owners of this four-bedroom Toronto home knew that it would be a labour of love. When Mimi Fortin and her husband decided to custom-build their new house, they decided to design it entirely to their taste, without worrying about resale. Designed by architect David Small Designs, the home features an enormous, two-storey main living space. The tall ceilings of the family room drop down to the kitchen to better separate the two spaces. The kitchen's central island bar seating appears to sit under a floating slab of the white Caesarstone, with storage underneath made of blonde wood millwork inside a box of stone slabs. The basement is an open level of polished concrete with potential to be a dream space for the enterprising host, with a full bar area and a glassed-in gym-studio.
CTV News
7 days ago
- Business
- CTV News
‘A downturn that is really starting to wreck havoc:' New condo sales in GTHA continue decline as developers cancel more projects
Condominiums and the CN Tower are shown along the Toronto skyline on Tuesday, April 25, 2017. THE CANADIAN PRESS/Cole Burston The Greater Toronto and Hamilton Area new condominium market saw just 502 sales in the last quarter, prompting one real estate analysis firm to speak out about what it says is a 'downturn that is really starting to wreak havoc.' The number was included in Urbanation's latest report, released Tuesday. The firm said that the 502 new condominium units that changed hands in the second quarter marks a decline of 69 per cent compared to the same time period last year and represents a 91 per cent drop compared to the 10-year average. 'The market has entered a phase of the downturn that is really starting to wreak havoc. Project cancellations are mounting, construction starts are collapsing, jobs are being lost, buyers are losing a lot of money, and developers are facing difficulties with closings,' Urbanation President Shaun Hildebrand said in an analysis accompanying the data. The GTHA condo market has been sluggish for much of the past year, with a Royal LePage report released earlier this week showing that the median price of a GTHA condominium unit fell 5.6 per cent year-over-year to $699,700. The median price of a single-family detached home decreased 1.2 per cent year-over-year to $1,448,700, according to the same report. Urbanation said in its analysis that four proposed condominium buildings were cancelled in the second quarter alone, bringing the number of cancelled developments since the start of 2024 to 21. The firm said that the cancellations of those projects will result in the loss of 4,412 housing units. Developers also appear to be holding off on new projects, with Urbanation's data suggesting that only three projects started presales this quarter, representing just under 900 units. Inventory levels, however, continue to soar amid soft demand. 'The GTHA had a record-high 2,478 new condominium apartments that were completed and available for purchase from developers as of Q2-2025, a 102 per cent increase from a year ago and more than five times higher than the level from two years ago,' Urbanation said. Note that this figure doesn't fully account for all completed units that were pre-sold but the purchaser has yet to close. Meanwhile, sales by developers in completed new condo projects totalled 131 units in Q2-2025, resulting in 60 months of supply for standing inventory on the market.' The price per square foot of condos also saw a six per cent decline from last year and a 16 per cent drop from two years ago, Urbanation said. In his analysis, Hildebrand said that while an eventual reduction in the completion of new condominium buildings 'should help to alleviate some pressure, the near-term will remain very challenging' for the new condo market.
Globe and Mail
15-07-2025
- Business
- Globe and Mail
Toronto market for new condos continues to crater as sales drop, developers cancel projects
Toronto's preconstruction condo market worsened in the second quarter, with sales sliding to their lowest level in three decades, developers cancelling projects and buyers struggling to close on new purchases. There were 502 sales of new condos in the Toronto and Hamilton area in the quarter that ended June 30, according to a report released Tuesday by industry research firm Urbanation Inc. That was down 10 per cent from the first quarter of this year and marked the lowest activity since 1993. The lack of buyers for new condos has led some developers to delay or cancel planned projects because they typically need to sell at least 70 per cent of a project to qualify for construction financing. 'The market has gone from bad to terrible,' Urbanation president Shaun Hildebrand said in an interview. Across the Toronto and Hamilton region, according to Urbanation, 21 developments amounting to 4,412 condo units have been cancelled over the past year and a half, which is the highest level since 2018. Four projects were cancelled over the past three months, including projects from developers Diamond Kilmer Developments and 95 Developments. Developers had already postponed or shelved numerous projects since the country's real estate market started slowing in 2022. In the past quarter, only three projects with a total of 891 units were launched, according to Urbanation. That is 86-per-cent lower than the 10-year average for the second quarter. Investors, who used to account for at least 70 per cent of the preconstruction condo sales, are no longer interested given that many of their purchases are now money-losing investments. Buyers have been having a hard time closing on their purchases because their properties are worth less than what they agreed to pay in earlier years. When a buyer is due to close, lenders typically only provide a mortgage based on the current value, not the price that the buyer agreed to pay. Because appraisals are coming in 10-to-30 per cent below a condo's original selling price, the buyer has to come up with the difference. Urbanation research shows that the vast majority of condos that were ready to be occupied in the second quarter were presold at an average price of $1,187 per square foot. By comparison, resale prices in newly built condo buildings averaged $903 per square foot, which is down 24 per cent from the original price. That shortfall is one of the reasons some buyers are defaulting on their purchase agreements. If a buyer is unable to close, the developer has to try sell the unit again or keep it on its books. That may be contributing to a record number of 2,478 condo units that were completed and being marketed for sale as of the second quarter, according to the report. That is double the amount from last year and five times higher than two years ago. Mr. Hildebrand said that number is likely conservative, as some buyers are still in the process of trying to close. 'I would say that there's many more units that the developers have on their books that they aren't necessarily making available for purchase right now because they're still trying to get the buyers to close,' he said. Investors who are able to close are facing their own issues. Many are burning through cash every month because they either can't find a renter or the rent they are charging is not enough to cover their condo fees and mortgage payments. The slowdown has hit the residential development industry with prominent companies such as Mattamy Homes, Great Gulf, Rennie & Associates Realty Ltd. and MLA Canada Realty cutting jobs. The market is not expected to rebound in the near term. There's still a record number of 17,117 condo units that are under construction and due to be completed over the next six months, for a total of 31,422 in the Toronto and Hamilton region this year. It is a difficult market for developers. Diamond Kilmer canceled a condo project in the east end of Toronto in the spring. 'Given the current market landscape, it's essential that we take the time to refine this project so it better aligns with evolving needs and expectations,' Ty Diamond, the developer's president said in an e-mailed statement. 'In the interim, all purchaser deposits have been returned in full, with interest.' In Markham, north of Toronto, 95 Developments canceled a small project. Last year, developer Aoyuan International canceled a large condo project to north of the city. Aoyuan and 95 Developments did not immediately respond to a request for comment. Meanwhile, some developers such as Marlin Spring are turning their condo projects into rental buildings. Marlin's chief sales and marketing officer, Erin Millar, said the developer would be making an announcement about the project in August. According to Urbanation, nine of the projects canceled over the past 18 months are being converted to rental.
Hamilton Spectator
12-07-2025
- Business
- Hamilton Spectator
Average rent for one-bedroom apartment in Hamilton remains over $1,700
While the average rent for an apartment in Hamilton dropped slightly in June, rental prices remain much higher than those seen in years prior. One-bedroom units in the city cost new renters an average of $1,787 per month in June — down from $1,824 in May, according to a national rent report from property listing service . Despite the drop, prospective renters looking at one-bedroom apartments last month would have paid similar rates to those seen in June 2024, when the same kind of unit rented for an average price of $1,780 per month. The average rent for a vacant two-bedroom unit in the city was $2,073 in June, down $32 from May and a $57 drop from June 2024, when the same type of unit cost, on average, $2,130. Even with rents stabilizing and often declining in the city over the last several months, rents in Hamilton — as well as across Canada — remain far higher than they were three years ago, noted the report. Back in June 2021, new tenants in Hamilton were looking at paying roughly $1,436 for the average one-bedroom apartment in the city, while a two-bedroom unit went for $1,772 per month, according to a past report . Meanwhile, during the past five years, the average rent for a one-bedroom apartment in Hamilton has at times surpassed $1,900 per month, while rent for a two-bedroom unit has reached more than $2,300 per month. Hamilton ranked 32nd in rental costs among the 60 Canadian communities included in the report. Rental rates in the city also remain well below both the national and provincial averages. Some neighbouring communities continue to outpace Hamilton in rental rates, while other nearby cities are more affordable, according to the report. In Burlington, the average monthly rate of a one-bedroom apartment was $2,159 last month, while two-bedroom units cost $2,573. In Guelph, the average price of a one-bedroom apartment was $1,987 last month, while the rent for two-bedroom units was $2,345. Meanwhile in London, the average price of a one-bedroom apartment was $1,746 last month, while the rent for a two-bedroom unit was $2,116. 's latest rankings, analyzed and written by residential real estate research firm Urbanation, are the average of all monthly listings from and . They include basement apartments, condos and units in single-detached homes.
CTV News
09-07-2025
- Business
- CTV News
Here's how it costs to rent an apartment in Ottawa
For Canadian renters, it may feel like the years since the COVID-19 pandemic have brought one hit after another. A for rent sign is displayed on a house in Ottawa on Friday, Oct. 14, 2022. THE CANADIAN PRESS/Sean Kilpatrick There was some good news for renters in Ottawa this summer as the cost to rent a one-bedroom apartment dropped in June, but rental rates jumped for a two-bedroom apartment. The monthly rental report from and Urbanation shows the average rent for an apartment or condominium in Ottawa was $2,199 in June, down from $2,239 in May. A one-bedroom apartment rented for $1,993 in June, down from $1,994 in May and $2,016 in April. The cost to rent a two-bedroom apartment averaged $2,578 in June, up from $2,239 in May. While the average rent in Ottawa was down in June, the report shows Ottawa saw the highest year-over-year average increase in rental rates amongst major Canadian cities. Rental rates have increased one per cent in Ottawa from June 2024, when average rent was $2,179 and a one-bedroom cost $1,989. and Urbanation say average rents in Ottawa have increased 15 per cent over the past three years. Vancouver has the highest average rent in Canada at $2,830 a month, with a one-bedroom costing an average of $2,537. Toronto has the second-highest rental rates in Canada, at $2,587. A one-bedroom cost $2,308 a month in Toronto in June. The average monthly rent in Kingston was $1,965 in June, down from $2,076 a month in May. The cost of a one-bedroom apartment was $1,873 in Kingston last month. In Gatineau, the average monthly rent was $1,938 in June, with a one-bedroom costing $1,724 a month. Kanata rents Kanata continues to have one of the highest average rents for Ontario cities outside of the Greater Toronto Area. The average rent in Kanata was $2,358 in June, down six per cent form May. Rent averaged $2,439 a month in May and $2,478 in April.
