Delphine Winton recently relocated to an apartment near Casa Loma, a building constructed in 1936, and she is content with her decision. When searching for a new living space, the 22-year-old student specifically sought out older structures, avoiding modern condos with sliding glass doors, lack of character, and unconventional layouts.
Winton’s preference for vintage buildings is shared by other Toronto residents who are shunning newer developments due to issues such as rent control limitations and subpar floor plans. Nicole Luongo, a 36-year-old policy analyst, recently leased a unit in Little Portugal that dates back almost a century, citing the charm and livability of older spaces as key factors for her choice.
According to a report from the Canada Mortgage and Housing Corporation (CMHC), purpose-built rental units are facing tougher leasing conditions due to stiff competition from the secondary market. While rent prices in older buildings are rising to match those of new constructions, many renters are opting for older units to secure modest savings in tight and expensive markets.
The demand for spacious layouts and rent-controlled properties is evident in the preferences of tenants like Samantha Dangubic, who emphasizes the importance of stable rent increases as she searches for a new residence. The surge in investment properties among Toronto condos built between 2016 and 2020 has led to a shift in housing perceptions, with newer developments being viewed more as financial assets than comfortable homes.
David Fleming, a real estate expert, highlights the trend of developers creating smaller condo units to maximize profits, leading to cramped living spaces designed primarily for investors rather than residents. The shrinking size of condos in recent years, with newer units being significantly smaller than those built in previous decades, reflects a market where investors are less eager to purchase new properties.
In the face of a changing rental landscape, tenants are becoming more discerning in their choices, benefiting from a market where average rents for one-bedroom units have decreased compared to previous years. Real estate agent Alex Zhvanetskiy observes a cautious approach among renters, who now have the luxury of selecting from a wider range of housing options without feeling rushed into decisions.
As developers offer incentives like free rent to attract tenants, questions arise about whether developers prioritize tenant preferences in their designs. Fleming argues that developers cater to investor demands, focusing on building units that are financially viable rather than meeting the needs of residents. If regulations were imposed to limit the construction of small units, Fleming believes that development in Toronto would significantly stagnate.