Toronto is flooded with small units, but residents would rather have more space than spas
According to the 2024 Canadian Multi-Residential Satisfaction Study (CMRS) by real estate research firm simplydbs, 62 per cent of surveyed residents said they would prefer living in buildings with larger suites, even if it meant fewer shared amenities.
The preference for larger living spaces aligns with findings from a separate survey conducted by Devron Developments. The survey found that 47 per cent of Greater Toronto Area (GTA) residents now view condos as a viable long-term housing option, and 53 per cent of current condo owners are open to purchasing a larger unit to accommodate extended living. Despite this growing demand for bigger spaces, the Toronto condo market remains flooded with smaller units, underscoring a persistent disconnect between supply and demand.
The CMRS study also reveals some notable demographic trends. While most age groups are leaning toward larger suites, younger residents between the ages of 19 and 24 are more likely to prioritize amenities over space. Income levels also play a significant role in shaping preferences. Residents earning less than $30,000 per year were more inclined to favour amenities, while those with higher incomes generally prefer more space.
Toronto currently has more than 120,000 purpose-built rental units in the development pipeline, according to a June 2024 report by the city’s planning department, but is still grappling with a shortage of family-sized housing units. In 2020, the city introduced guidelines requiring 25 per cent of new condo developments to include larger units — specifically, 10 per cent for three-bedroom units and 15 per cent for two-bedroom units. However, many developers are failing to meet these targets, choosing instead to build smaller, more affordable units to maximize profits.
According to Devron, developers will need to adjust their strategies to meet the evolving demand or risk leaving a growing segment of the market underserved. If the supply of smaller units continues to outpace that of larger condos, developers will face further challenges in the years ahead.