The Supply And Decrepitude Of Toronto Condominiums
Written by: Reid Goodison
There’s no doubt about it – Toronto housing is booming. With 100,000 condo units under construction, and condo prices having risen nearly 26% over the past five years, builders and investors are in a prime position to reap rewards.
However, there is a looming concern: the integrity of some of these developments is already questionable. Even some of the more recently constructed buildings have shown signs of premature wear and tear. Glass panels have fallen off of the Trump and Shangri-La towers, as well as several other lesser-known developments.
Many other new buildings aren’t up to facing our daunting Canadian weather, with water leak issues and poor insulation.
Are these signs telltale of a ‘get in, get out’ mentality, with builders and investors cashing in on soaring condo prices? Ted Kesik, a professor of building science at the University of Toronto illuminates the rate of decay exhibited by these buildings. “The life cycle is clear. They are okay for the first five years, they gradually deteriorate by year 10 … and don’t even reach year 20 before significant remedial work needs to be done. In 50 years these buildings may well become an urban slum.”
For seasoned occupants or investors, this five-year window is key to their modi operandi. Condo dwellers are advised to jump ship before the five years is up – typically when the warranty expires. Investors often sell off the asset and seek opportunity elsewhere, having benefited from a bump to equity, rental income, and price appreciation.
Whether or not the situation in 50 years will resemble Kesik’s prophecy is unknown. However, it is clear that these buildings are exhibiting significant deterioration on a much shorter scale. Buyers beware.
Born and raised in Brampton, ON, Reid Goodison is a Social Media Intern for the Bay St. Bull magazine. Reid graduated Dalhousie University in 2014 with a BA, majoring in Political Science and minoring in Business. Reid went on to work as a Communications Assistant for the Government of Canada. Reid has an eclectic slew of interests, including international politics, indie music, hockey, football, North American fiction, business, local art, and fashion.
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