New condo developments and new condo investing are continuing to grow in popularity in Toronto. Much of that demand is due to the growth in a specific sub set of the population, people between the ages of 25 and 35. Not only is there a lot of Ontario born people in this age group, but according to statistics Canada, there is also a good number of “provincial immigrants” of that same relative age group moving into the area.
Why is this a key area to look at when it comes to demand in new condos? Many of the people in this age range are at the stage of their life where they are now looking for a place of their own. At the stage where they finally move out of their parent’s house and start out on their own journey into occupying a new home, whether it be ownership or renting.
The condo market in Toronto has become very appealing to this age group because if provides a relative lower cost of living compared to home buying, while also providing the key benefit to this demographics of not having to give up on city life. Since more people are looking at occupying property in the city, it’s quite obvious why the demand for condos is still quite high.
It also appears based on statistics Canada data that the number of people in this age group will be increasing for the next five to ten years. These are numbers that the condo development industry likes to see, because it means that they will have an opportunity to supply growing demand for many years to come.
It is also prudent to point out here that since the people in this age group simply need a place to live, it really doesn’t matter whether they end up renting or buying a property. Both situations help support a strong Toronto condo market. People who are renting are helping the rental market stay strong. The people who are buying are also assisting in the growing demand of properties in the city. The end result is that the entire development industry needs to keep up with the demand in order to make sure that there are enough places for people to live.
Between the growth in the population of people who are moving into their own properties for the first time, and the empty nesters in the older demographic, which is also trending closer and closer to the city, it appears the demand for condos in Toronto will continue to be strong for many years to come.