“Manhattanization” descends upon Toronto

It looks like Toronto’s in a New York state of mind. The Canadian Broadcasting Corp. reported that amid rising prices of detached homes, condominium living in Toronto could become the default option for people who want to live in the city’s center. This phenomenon is being referred to as the “Manhattanization” of Toronto, as it will make families move into high-density apartment buildings.

As it currently stands, single-family detached homes are subject to fierce bidding wars for tens of thousands of Canadian dollars above the asking price. Analysts project a price increase for these properties over the next decade of 30 to 50 percent. At the same time, an oversupply in the condo market means prices will only rise slightly or stay constant.

Toronto currently takes first place for the amount of under-construction high-rise buildings in North America with 132. Mexico City comes second with 88 and New York City comes in third with 86. Toronto already has 1,875 completed high-rise buildings and skyscrapers for condominiums, and in the next 18 months, roughly 53,000 new condo units will be added. As The Real Deal previously reported, some new condos in Toronto are taking inspiration from New York City landmarks.

Local real estate mogul Brad Lamb said Toronto will soon be a city like New York and London, where even people who earn millions of dollars a year won’t be able to afford single-family homes in the city center. [CBC]