Delphine Winton recently relocated to an apartment near Casa Loma constructed in 1936, and she is content with her decision. When searching for a new place, the 22-year-old student specifically sought out older buildings, avoiding modern features like sliding glass doors and uninspiring layouts common in newer condominiums. She expressed frustration at the lack of character and space for a dining table in newer units.
Winton is not alone in her preference for older buildings in Toronto. Many tenants are steering clear of new developments due to reasons such as the absence of rent control and poorly designed layouts. Nicole Luongo, a 36-year-old policy analyst, emphasized her choice for a nearly 100-year-old unit in Little Portugal, citing the unappealing sterility of newer constructions and the desire for a more spacious and comfortable living layout. Affordability also played a significant role in her decision to opt for an older property.
According to a recent report from the Canada Mortgage and Housing Corporation (CMHC), purpose-built rental units in Toronto are facing challenges in leasing due to heightened competition from the secondary market. While rent prices in older buildings are starting to align with newer ones, the worsening affordability in tight markets has led many renters to seek savings by selecting older housing options.
Rent control is a crucial factor for Samantha Dangubic, who is searching for a larger living space with her partner. The limitations on rent increases for buildings occupied before November 15, 2018, in Ontario are a key consideration for tenants like Dangubic, who have witnessed substantial rent hikes in newer buildings.
The trend of viewing apartments as investments rather than homes has contributed to the prevalence of poor layouts in newer constructions, according to David Fleming, a real estate blogger and broker in Toronto. Developers have been reducing the size of condos over the past decade to accommodate more units while keeping prices steady, primarily to secure pre-construction financing and attract investors.
The shrinking size of Toronto condos, particularly those built between 2016 and 2020, compared to units constructed from 1971 to 1990, reflects the shift towards smaller living spaces. The market has seen a decline in condo sales, with only 53 new units sold in September, indicating changing preferences among buyers and renters.
As rental prices in Toronto have decreased, tenants now have the luxury of being more selective in choosing their living spaces. Real estate agent Alex Zhvanetskiy notes that renters are approaching their housing decisions more cautiously, avoiding newer builds due to the lack of rent control and subpar layouts. Landlords are offering incentives such as a month of free rent to attract tenants, but the focus on compact, investor-friendly units persists in the market.
In conclusion, the housing landscape in Toronto is evolving, with tenants increasingly favoring older buildings for their charm, affordability, and better living layouts, while developers continue to cater to investor preferences for smaller, more profitable units.