What’s Trending In Toronto Real Estate?

Dovercourt Village, Real Estate

Welcome to the Urbaneer.com blog.

When I was 6 years old, I watched the fallow fields and gnarled apple orchards behind the houses on my childhood street in Oakville’s Falgarwood Neighbourhood cleared and surveyed. From the remains, stormwater drains, utility services, and winding streets-to-be were excavated, trenched and graded, and a collection of several hundred ’70s suburban tract houses was systematically built from the footings & foundations up. To witness each piece of the shelter puzzle sequentially unfold  – from stick framing to mechanicals to exterior wrap and interior finishes – left me spellbound. Ever since, I’ve been fascinated with the many facets of shelter, housing, & home.

Fast forward to this month and I’m celebrating my 35th year as a realtor and housing consultant in Toronto, Ontario, Canada.

Cue: Sparkler!

 

 

What’s Trending In Shelter?

When the topic of what’s trending in shelter comes up, the discussion will vary depending on who you’re asking. If you consult an interior designer, the conversation may be about the staying power of natural materials like stone, wood, and linen; the crossover of fashion colours to home colours; or popular design styles like Quiet Luxury or Maximalism. The same question to architects might go in the direction of environmentally resilient design; the energy performance of buildings, and the life cycle of different construction materials. If you ask a Downtown Toronto realtor trading dwellings in a variety of types, sizes, and conditions built as long ago as the 1840s who is tasked with matching the wishes, wants and needs of Buyers operating under strict budget limitations, he’d say what’s trending are the houses that offer flexibility, possibility, and future opportunity offered at fair market value.

Toronto is filled with many different Buyer profiles all competing for housing. There’s the pool of purchasers such as the urban professional single and 2some, the household with city-centric kids, the forever home seekers, the empty nesters plus the downsizing boomers. Most of us know, or are familiar with the mom & pop investors, the flippers climbing the property ladder plus those banks of moms & dads helping Junior and Juliette.  And let’s not forget the villains who are snowwashing money,  renting their condo on Airbnb without a license, and the duplicitous pension funds and other unsavoury financial landlords evicting long-term tenants in their quest for profit.  You’ve probably heard about multi-generational families living under one roof, but have you heard about couples living apart together?

All of these target markets typically seek a place near their work, their family & friends, and the activities that make their household thrive, so the top of the search criteria often starts with what locations are feasible under the limitations of their budget. From there, the properties most coveted are those within walking distance of shops & cafes, public schools & institutions of higher learning, and green spaces for respite & recreation, as well as easy access to public transit, bike lanes, and popular social and cultural destinations that enrich the everyday experience. Further to this, generally the more centrally located the property, the more lush and verdant the site, the bigger the structure and lot, and the better the quality and condition (and often the newer the dwelling), the greater the acquisition cost.

 

 

Despite the Bank Of Canada’s interest rate shock that began in March 2022, pushing the country’s real estate market over the first peak of its roller-coaster ride toward the bottom of a valley it has yet to hit, the need for shelter has never changed. In fact, in a City that has been in a perpetual housing crisis pretty much since its establishment in 1834, Buyers have always been searching for dwellings with space plans and functions that complement the intended household’s occupants. For certain segments of the marketplace. it’s not so much about fixtures and finishes, or even structure and materials, but about the flexibility and features of the habitable house which ultimately attracts Buyer interest (although all these criteria factor into a property evaluation, which I expand on in Understanding The 6 Layers Of Property).

From my view in the real estate trenches, the freehold properties with existing spacious flexible floor plans and the optimal EHON (Toronto’s Expanding Housing Options In Neighbourhoods) as-of-rights feasible are the most strategic purchase today and the most profitable sale tomorrow. Done right, a Buyer who can lock down a property that serves them now, in the intermediate, and even become the Forever Home they dream about in their future will be saving a significant investment of time, energy and hundreds of thousands of dollars bypassing the necessity to climb up or down the property ladder. 

I’d like to showcase an example in a detached house we recently brought to market that is superbly situated just a block norsth of the Ossington Subway Station (6 subway stops west of Yonge & Bloor on the Bloor Danforth Line 2), and around the corner from emerging Dovercourt Village.  We call it The Fantastic Flex House In Dovercourt Village

 

*The Main Floor Family Room At Our Listing At 117 Hallam Street In Dovercourt Village

 

A Dwelling With A Main-Floor Family Room

If you ask most Buyers what they want in a home, they’ll say an open-concept entertainment space where they can prepare a meal & libations in the company of their family and friends without anyone getting burned or knifed. Accidentally, of course. And when the Buyers are parents to a laughing barking brood, they’ll also express their yearning for a proper living and dining room to host dinner parties by candlelight with wine and adult conversations (with their excitable under-18 set confined to the family room with headphones).

Here’s my post On The History – And Popularity – Of The Open Concept Space Plan – and – How COVID-19 Will Likely Change How We Design Our Homes.

 

 

 

Homes That Nurture Co-ownership

Toronto has always had long-standing affordability challenges, but the omniscient margin between incomes and housing prices compounded by inflation (with Canadian manufacturers resorting to shrinkflation –> a study found 1 in 5 items in your shopping cart are likely smaller than they used to be) are making it challenging to get onto, or climb, the property ladder.

Meanwhile, with an aging population, the lack of assisted living spaces and the high costs for private lifecare – in addition to the genuine collective post-pandemic fear of long-term care homes – are prompting seniors and soon-to-be seniors to explore their options. As I wrote in Dear Urbaneer: Do We Age In Place, Downsize, Cohouse Or Move To A Retirement Community? we’re going to see mature singles and couples combine resources to create self-managed communities of care and companionship that share the cost of in-care health services.

Finding the right property to support these initiatives isn’t easy, and the issue of tenure compounds it. The only way for individuals to own title to their private living quarters is if it has been legally converted and meets zoning, building and fire codes. In other words, it will be either a condominium or a co-ownership apartment (a co-ownership is where the Buyer owns shares to the deed of the entire building – including the common areas – with their ‘shares’ granting them the exclusive right to occupy an individual apartment). 

Here’s a blog that discusses some of the challenges for co-ownership seekers and the limitations of most of the existing housing stock in Toronto: Dear Urbaneer: Can I Sell Part Of My House For Co-Ownership?

 

 

 

Multigenerational Living Is Buzzing 

Whether the motivation is to keep costs economical, to make elder and child care more efficient, or to collectively engage daily for familial health and well-being, multi-generational living is growing. 

It’s particularly appealing for the sandwich generation who are caring for their parents while raising kids because it alleviates a lot of the stress, guilt and worry, that accompanies bouncing between locations. 

The wishes, wants and needs of one multi-generational family can be entirely different than another, depending on the size of the household, their domestic interests and hobbies, and their spatial needs.  Furthermore, accommodating universal design and accessibility may be a factor as well.  Here’s a blog that discusses this further: Dear Urbaneer: What Are The Important Considerations Surrounding Multi-Generational Housing?

 

*The Entertainment Space In The Income-Offset Suite At Our Listing At 117 Hallam Street In Dovercourt Village

 

Buying The Income Offset 

Shelter is expensive in Toronto, so it’s not unusual for dwell hunters to explore all the ways they might keep their housing costs low or reduce their debt load more quickly. One of the best avenues to achieve this is by buying a multi-unit property. After all, a property that has 2, 3, or more units means you can have tenants help pay the operating expenses and mortgage interest costs of your principal residence.

In this context, the smart buy is a dwelling which might require you to max out your mortgage initially but, because the property has one or more additional units, they can be rented to serve as an income offset. I like these kinds of properties for their adaptability. You could rent the secondary suites indefinitely to pay off your mortgage and serve as a long-term income stream or simply rent until you’re financially secure enough to occupy the entire property. Alternatively, you could rent the units until a family member – like an aging parent or an adult child – needs space for semi-independent living. This is particularly effective when your objective is to buy a Forever Home where the dwelling can grow as your household expands over time.

There are lots of freehold houses in the city centre that are already divided into duplexes and triplexes – which can usually be deconverted easily- or converted back should the necessity or preference arise.  Additionally, there is a great desire among this cohort for an urban location, because it attracts more renters and garners a convenience premium. 

Here are 2 blogs that discuss this further: Should I Seek A Home With Rental Potential? – and – How To Strategically Purchase An Income Property.

 

 

 

 Investors Seeking An Alternative To The Condo Market (With An Eye To The Future) 

With the higher interest rate environment putting a pinch on returns, a condo market flooded with inventory amidst price depreciation, and the vacancy rate climbing, astute investors are looking for opportunities that have broad appeal to a variety of tenants that will net a higher return over the long term. 

In Toronto, this means the focus is shifting. Investors are turning their backs on the new preconstruction condo market for a couple of reasons. First, the price of admission for a preconstruction condo in the city currently ranges from $1500 to $2000 per square foot while the resale condo market is seeing prices tumble towards $1000 per square foot for a building only a handful of years old. This gap between new condo prices and resale condos is too substantial, calling into question whether a condo purchased preconstruction today will even be worth its original purchase price on completion. If there is no built-in profit, it kills the motivation for investors to buy a preconstruction condo. Now that our market has shifted, investors are reassessing their investment strategies.

I won’t deny the peace of mind that accompanies the purchase of a condo. Owners are relieved from most of the maintenance, repairs and replacement of major building components because it’s handled by the condo corporation it’s part of. However, there are limitations. The value of a condominium is pretty much fixed based on its location and size, all condos are still vulnerable to unexpected expenses and special assessments and, at the end of the day the value of any unit, say it’s in a 40-storey tower with 400 units, is dependent at any given time on the most motivated of Sellers with a similar unit.

Meanwhile, the real opportunities lay in the centrally-located freehold housing market where several as-of-rights have been instituted by Toronto City Hall’s Expanding Housing Options in Neighbourhoods (EHON) program over the past 6 years. Since 2018 and 2022 respectively, sites meeting the access and setback criteria have the as-of-right to build a Laneway House or a Garden Suite. In the Spring of 2023, all dwellings in single-family neighbourhoods were granted the as-of-right to become a 4-unit rental property or a condoplex (plus Laneway House or Garden Suite when conforming) free of City Development Charges, and a new bylaw will soon allow houses on major streets the as-of-right to be redeveloped up to 6 storeys high with as many as 60 units. 

In other words, the real profit to be made is in the future value of the land that the structures sit on. The dwelling itself and its outbuildings are, regardless of type, always aging towards obsolescence.

For the investor, a house in fair to good conditions already converted into units that garner good rents, in a central location near an existing or soon-to-come transit station (like the Eglinton Crosstown LRT or the Ontario Line) is a sure bet, because its resale value will not be eternally based on its square footage or condition like a condo, but based on its highest and best use as more and more properties in proximity to the dwelling are redeveloped. It’s a strategic long term hold.

 

 

Looking For Laneway Housing & Garden Suites

Our perpetual housing crisis has become so severe an entire generation is being shut out of the housing market, save for those with help from the Bank of Mom & Dad. In fact, I’d say currently about 8 out of 10 of our Buyer clients under 40 are getting financial gifts from family to get on, or climb, the property ladder.

I’ve long said that as selfless as the Bank of Mom & Dad may be, one or both parents can’t help but exert their influence towards the property with a second primary suite in the existing residence or the potential to create one in a future outbuilding. Why? Funds from the Bank of Mom & Dad inherently come with strings attached because, well, it’s human nature to always have a backup plan. Wouldn’t you agree? Your Mom-In-Law may be ponying up some cash to help you get onto the property ladder because she cares about your future security, but it’s also equally important in case the Father of her children dies younger than expected. And, yes, her daughter knows this too. They’ve simply made the tacit agreement neither hubby needs to be told this piece of information until the sale is complete.

However, now that we’re collectively becoming familiar with laneway dwellings and, to a lesser extent, garden suites, we’re seeing the Banks of Moms & Dads proactively pitching their kids to create a family compound. Typically, these Snowbird Boomers want to build a laneway house for themselves to occupy for half the year with the colder months spent in warmer climes. If the parent’s property is an option, they’ll build the Laneway House or Garden Suite on their existing site and hand the keys to the original house to their kids to make their own (and maintain).

As a designer and space planner, if you’re considering building a laneway dwelling – say, for example, at 117 Hallam Street in Dovercourt Village – with the as-of-right to build a 1350sf accessory home, I would recommend the Main Level include entrances both off the lane and garden exposures, a 3-piece washroom with walk-in shower and a bedroom, a staircase to the upper level, and a single-car garage with garage door on the laneway and French doors on the garden side that includes the rough-ins for a kitchenette plus a rough-in internal connecting door to the laneway dwelling portion that is prohibited by Building Code when used as on-site parking. On the Upper Level, I would create an Open Concept Living Space with a kitchenette, a 3-piece washroom with a walk-in shower and 1 or 2 sleeping alcoves. I suggest this because the Upper Level could become a self-contained unit from the moment it’s complete and the Main Level could be parking / workshop / studio + guest room or WFH office. However, just as the existing dwelling has the flexibility to adapt to future needs, at some point in time the Main Level – including garage – could be converted into a Living Space for a parent Aging In Place while the Upper Level could be home to your now adult child. At this moment the City does not allow two separate units in a Laneway Dwelling, but those with the foresight to construct a Laneway Dwelling in this manner (and to code) may see it become an option in the future. I suggest this because urban planning policies do change and no matter how proactive the City it’s feasible our perpetual housing crisis remains just that. Here’s a post showing how one avenue in East York evolved over 100 years to see the number of houses on one block increase by 50%  as the City allowed existing lots to be severed into two in The History Of East York & Toronto Real Estate – Featuring Holborne Avenue! Now that the City allows 4 units + a potential 5th on one lot, a day will come when a street has 4 or 5 times as many dwellings as it originally had. How amazing would that be?

Furthermore, given all of our aging housing stock is moving towards obsolescence, perhaps you don’t need to pay Top Dollar for a newly renovated house catering to aspirational living when maybe all you need is a dwelling that will suffice for the number of years you have left to live, or intend to live there. After all, if the property you buy is inevitably going to be torn down, maybe you can purchase a property for a lower price that aligns with your time frame. Here’s a post about a bungalow approaching obsolescence that could have had an injection of capital to upgrade to suit, and a Garden Suite built to the specifications and taste of a second Buyer, that would have allowed each co-owner – let’s say to besties who want their own intelligent ‘just enough, but not too much space’ designed dwells – purchased for the same amount than if they each bought two Toronto condos. Here’s my post on how we should examine the possibilities that accompany building a Garden Suite or a Laneway House – On A Now Sold Property In East York, Toronto.

Here are 2 blogs with more info: About Laneway Housing In Toronto, By Sustainable And Urbaneer -and – On Garden Suites In Toronto, By The Architect Builders Collaborative, Sustainable, & Urbaneer

It’s feasible that one day in the not-too-distant future this property will be redeveloped into a 5-unit condo or rental multiplex (including laneway dwelling). The primary building – with Committee of Adjustment approvals for minor variances – could be around 2478 square feet above grade + 800 square feet below grade. The laneway dwelling has the as-of-right approval to be around 1350 square feet. That’s two 2-bedroom suites and two 3-bedroom suites. How amazing! Here’s a post about a bungalow that became One Of The First New 4-Unit Condos Replacing Single Family Houses In East York, Toronto

 


 

SRSLY!

What if I told you that our current listing A Fantastic Flex House In Dovercourt Village could serve each of these Buyer Profiles?

 This treasure is on a 21 x 118-foot lot with laneway access to a 2-car garage in a premium downtown location, with so many amenities steps away in Dovercourt Village.  

•  It’s currently configured into two 2-bed suites but is easily deconverted to a single-family residence if that’s your objective.  

•  A two-story extension means it already has a main-floor family room ready for your laughing barking brood.

•  Outdoor space for family & friend gatherings. Yes, please!

•  Super walk/bike/transit scores. A must for renters and urban homeowners alike. 

•  This dwelling has as-of-right approvals for a laneway dwelling up to 1350 square feet that you can build now, or at a future date!

 

 

If you’re interested in booking a private viewing, it would be our pleasure!
Contact James Ormston (james@urbaneer.com) or Steven Fudge (steve@urbaneer.com), okay?

This property offers flexibility, possibility, and the opportunity to realize a profitable return not simply on the escalation of the market over time, but on its existing as-of-right highest and best use. Isn’t this something you should consider?

 

How Can We Help?

The process of choosing a property and its location is complex. First, we define our practical needs such as the number of rooms required for sleeping, living and working. Second, we determine what location and style best reflect our social values and affiliation with the community. Third, we define our budget and evaluate how realistic we can tend to our needs and wants with our finances.

During this evaluation, we discover that our housing choice reflects our age, status, identity and family size. From urban edge to bucolic suburbs, some neighbourhoods are geared to celebrate urban cultural amenities, others to raising children. Whatever your particular case, research on housing and identity indicates that owning a home, as part of the Canadian Dream, is seen as a sign of financial and personal success – as well as reflecting that one is ‘biographically on schedule’.

Do you need help defining your housing needs? At Urbaneer.com, we know dwellings, as meaningful objects and settings, are non-verbal signs defining and communicating who we are. Because we know the dwelling place and our identity, whether social or personal, are inevitably linked through its form, style, and interior and exterior decorations, we know it’s vital to define your needs, your wants, and your wishes for the perfect home.

Here are two recent testimonials – one from a Seller and the other from a Buyer – sharing their own point of view on The Urbaneer Team:

Because Knowledge, Experience & Time = Toronto Real Estate Wisdom

 


 

Here are some of our past posts that explore different housing types & trends:

Trending In Toronto: Single Family Houses Replaced By Boutique Condo Townhomes

Dear Urbaneer: What Are The Buyer Profiles For Multiplex Properties?

On Garden Suites In Toronto, By The Architect Builders Collaborative, Sustainable, & Urbaneer

Twenty Reasons Your Kid Will Love Living In A Condo

Dear Urbaneer: How Can Minimalism Help With Affordability & Sustainability In Housing?

Build A New Multi-Generational Family Residence, Co-Housing For 4 Friends, An Income Property Or Small Condominium In East York, Toronto

The Need And Demand For Live/Work Properties In Toronto

Design Innovations For A More Affordable Canadian Housing Future

How Urbaneer Sold An East York Bungalow ‘Estate Sale’ For Redevelopment

More Adaptive Reuse Sales: Churches, Factories, Coach Houses, Dairies & Garage Conversions In Toronto

Dear Urbaneer: What’s Being Done To Create Affordable Housing In Toronto?

How Canada’s 3 Levels Of Government Shape Housing Policy & Programs

How Toronto Real Estate Is Shifting From ‘Fixer-Upper’ Flips To ‘Tear Down’ New Construction

A Conversation About Corner Store Conversions In Toronto

Exploring Vintage Brick & Beam Factory Conversions & Concrete ‘N Cool Contemporary Lofts In Toronto

All Residential Properties In Toronto Can Now Become Four Units As-Of-Right

 


 

Want to have someone on your side?

Since 1989, I’ve steered my career through a real estate market crash and burn; survived a slow painful cross-country recession; completed an M.E.S. graduate degree from York University called ‘Planning Housing Environments’; executed the concept, sales & marketing of multiple new condo and vintage loft conversions; and guided hundreds of clients through the purchase and sale of hundreds of freehold and condominium dwellings across the original City of Toronto. From a gritty port industrial city into a glittering post-industrial global centre, I’ve navigated the ebbs and flows of a property market as a consistent Top Producer. And I remain as passionate about it today as when I started.

We’d love to introduce your services to you.

Serving first-time Buyers, upsizers and downsizers, and people building their long-term property portfolios, our mandate is to help clients choose the property which will realize the highest future return on their investment while ensuring the property best serves their practical needs and their dream of “Home” during their ownership.

Are you considering selling? We welcome providing you with a comprehensive assessment free of charge, including determining your Buyer profile, ways to optimize your return on investment, and tailoring the listing process to suit your circumstance. Check out How Urbaneer’s Custom Marketing Program Sold This Authentic Broadview Loft In Riverside to learn more about what we do!

We are here to help without pressure, or hassle.

 

 

Thanks for reading!

-The Urbaneer Team

Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-800

– we’re here to earn your trust, then your business –

Celebrating Thirty-Five Years As A Top-Producing Toronto Realtor

 

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*Love Canadian Housing? Check out Steve’s University Student Mentorship site called Canadian Real Estate, Housing & Home which focuses on architecture, landscape, design, products, and real estate in Canada!

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