With the price of a single-family home increasing the Toronto area, these kinds of homes are feeling that much more unattainable for a large demographic of home buyers. When new buyers enter the market, they are looking for a home that they can afford to live in and that might turn into a great investment for them down the line. Toronto’s current upward pricing trend on single-family homes is increasingly making that feel impossible for new buyers.
Since single family homes are increasingly unaffordable for many new buyers, there is a growing market for a specific kind of home: a condo. Whether pre-construction or already built, condos present a good and viable option for those that just don’t think a single-family home fits their budget or their needs.
In areas like Oakville and Burlington, where housing prices are continuously on the rise, condo units are a hot, in-demand commodity. So, whether you are looking to buy a condo unit for yourself or are considering purchasing one to use as an investment rental property, you really can’t go wrong in these areas.
3 Groups of Buyers Who Opt for Condos
There are 3 main classes of buyers that are most suited to want to get themselves in to a condo unit rather than a single-family home. Though there are naturally others that don’t fit these molds, these are the most common condominium buyers currently. These groups are large and growing and as such, push demand levels.
With these influential groups pushing demand, savvy investors looking for rental properties have found exceptional upside investment potential in new construction condo purchases. Our Team is focused nearly exclusively on this niche market to assist new condo buyers – whether to live in or as an investment property to rent.
- are likely just starting in the real estate investment area
- usually don’t have a family yet, so don’t need a large home with excess outdoor space
- often are looking for affordable housing that won’t break their budget right out of the gate
- might even want something that they could rent out when they decide to upgrade
- want the transportation options, nightlife and amenities that the city offers, but don’t need to be in the downtown core.
- are often looking to downsize from a larger home
- are content with less living space and appreciate the extra amenities they’ll get with their condo maintenance fee
- may have strong equity and income to invest, but they don’t feel the need to maintain their own home single-family home
Newcomers to the market…
- are families that are new to the real estate market
- are looking for space to own, but aren’t ready to invest in a single-family home
- need to start modestly so they can build equity
- need to stay within a budget that might not be suited for the Toronto single-family home market yet
- often are looking to get out of or stay away from the expensive GTA rental market so are open you buying in the surrounding areas like Burlington and Oakville
These buyers create the market
Regardless of what trends the housing market in the Toronto area follow, these 3 classes of buyers will likely always exist to create a surge in the condo market around the GTA. Particularly in Burlington and Oakville, where residents can find all the amenities they’ll want in their neighbourhood without the hustle and bustle of a big city, there is going to be a regular surge in condo demand.
Both preconstruction condos and existing units are the target of these groups, with some happy to wait for the preconstruction units in order to secure some of the perks available to them while others are looking to make a quick purchase with an already built unit.
Though the housing market goes through its own ebbs and flows, the needs of these three categories of buyers will create a consistent demand in the GTA condo market.