Butler said there’s been “severe overbuilding” in the Toronto condo market for a number of years, specifically when it comes to smaller units.
“The tiniest of tiny condos,” Butler said. “It’s weird that in a country like Canada where there’s been a consistent housing crisis for the last 10 years that if you build a very bad product, people won’t take it, it’s as simple as that.”
Butler said many of the unsold condos on the market today are ones designed for investors or real estate speculators and are not practical for most families.
“They are roughly the size of large hotel room, only meant to be rented out, and there’s been simply a massive overbuilding of non-family units,” he said, noting that many of the condos for sale in Toronto currently are 500-square-feet or less.
Price them appropriately—like, less than a dollar per month per square foot rent, or maybe the cost of a used RV to own—and you might see some uptake. As things stand, I expect these are unaffordable for the people who might be able to use them.
If the idiot owners won’t budge on charging too much for too little, they deserve to go bankrupt over it.
Prices are coming down, it may take a bit of time to shake out.
Students, affordable housing, starter homes, some retirees will see a downsize opportunity, reducing overcrowding in some homes.
Lots of utility at the right price.