Delphine Winton recently relocated to an apartment near Casa Loma, constructed in 1936, and she is content with her decision. In her search for a new residence, the 22-year-old student specifically sought out older buildings, avoiding modern condos with sliding glass doors, lack of character, and unconventional floor plans she often encountered. “God forbid there’s enough space for a dining table,” she remarked to CBC Toronto.
Winton is not alone in her preference for older accommodations in Toronto. Many residents are opting for established buildings over new developments due to factors such as the absence of rent control and unsatisfactory layouts, especially as tenants gain more bargaining power in the current market. Nicole Luongo, a 36-year-old policy analyst, recently leased a unit in Little Portugal dating back nearly a century, expressing her preference for the charm and spaciousness of older properties. She emphasized the importance of an affordable and comfortable living space.
According to a recent report from the Canada Mortgage and Housing Corporation (CMHC), purpose-built rental units are facing increased competition from the secondary market, leading to longer leasing times. While rental prices in older buildings are beginning to align with newer constructions, the CMHC highlights the declining affordability in expensive markets, prompting many renters to opt for older housing stock to secure modest savings.
Rent control is a crucial factor for Samantha Dangubic as she searches for a larger living space with her partner. She noted the limitations on rent increases for buildings occupied before November 15, 2018, in Ontario, contrasting the stark rent hikes experienced by friends in newer developments. Dangubic questioned the target demographic for these new condos, given the prevalence of investor-owned properties in Toronto’s real estate market.
David Fleming, a local broker and real estate expert, attributes the trend of shrinking condo sizes to developers aiming to maximize profits by accommodating more units in a building while keeping prices competitive. The shift towards viewing apartments as investments rather than homes has led to suboptimal layouts and diminishing living spaces, as evident in the shrinking square footage of condos built from 2016 to 2020 compared to those constructed between 1971 and 1990.
The evolving rental landscape in Toronto has empowered tenants to be more selective in their housing choices, with the average rent for one-bedroom units decreasing compared to previous years. Real estate agent Alex Zhvanetskiy highlighted the cautious approach of renters, who now have a wider array of options and are increasingly shunning new builds due to issues like lack of rent control and poor design.
Developers are offering incentives like one month of free rent to attract tenants to new apartment complexes, but the focus on profitability often overshadows considerations of tenant preferences. Fleming emphasized that developers cater to investor demands, resulting in a market flooded with tiny units tailored for maximum returns. He cautioned against regulatory interventions that could stifle construction activity in Toronto, citing the strong investor appetite for compact condo units.
