The construction of atlantic condos is expected to hit a record of at least $1 billion in 2020, with about 1,600 projects being under construction at more than 4,000 condominium projects in the region.
The construction boom is coming amid a boom in condominium construction in the United States, with projects already nearing the record level of more than 3,800 projects built last year, according to research firm Zillow.
And in Canada, the number of condos built in 2019 was more than 7,000, according the Canadian Real Estate Association.
“We are seeing an explosion in condo development across Canada,” said Michael Toth, vice president of real estate at the real estate agency.
“In Canada we are seeing a real resurgence, especially in the last two years.”
That resurgence is largely thanks to the construction of more and more condominium towers and condos, with many condos now being built in condos and apartments.
But there’s a big caveat.
“The condo boom is not sustainable,” said Toth.
“There are going to be condo towers in the future and condo developments aren’t going to keep up.”
While condos can be built at a low price, Toth said the condos are only going to work in a limited number of locations.
“A lot of condo development will go to the bottom-tier condos, or the condos that are being built for a very small number of people, which is the condos in downtown atlantis,” he said.
“So that’s where we’re going to see the condo boom.”
While condo development in Canada has grown in recent years, there are still concerns about condo towers and the health and safety of the residents.
Toth and other experts say it’s time to start paying attention to the health effects of condos in a much larger and more urban setting.
“It’s really a good thing that there are a lot of condos around, but it’s a good problem to have,” said Andrew Poulin, vice-president of realty and commercial development at the Real Estate Council of Greater Toronto.
“You’ve got to keep an eye out for the potential health effects.”
Toth believes that condo development is only going the right direction in Canada.
“I think the condo is going to continue to be the most important component of the residential rental market for the foreseeable future,” he says.
“But the condo doesn’t do the health benefits of the building itself that it once did.”