Even with the home market stabilizing, Toronto is still leading the CONTINENT in high-rise construction. There are actually so many projects going on right now in Toronto that there are more cranes up in the city than the rest of the nation combined.
That’s a lot of cranes!
It all starts with home starts that were started (say that 20 times really fast) back in 2011, 2012 and last year. Many of these projects are nearing completion, which means that housing is about to get a whole lot more affordable across the GTA.
But what does this mean for the rest of Canada? What will happen to all those jobs once construction starts to slow down? Who does all this construction really benefit, anyway?
Toronto The North American Leader in High Rise Construction
There are more cranes up in Toronto today than anywhere else in Canada – and that’s saying something. The last few years construction has boomed across the Greater Toronto Area, leading to more jobs, more homes and greater prosperity.
In fact, Southern Ontario today has some of the wealthiest cities and best ranked places to live across Canada and some of the northern United States.
What it boils down to though is that as long as the construction industry continues to boom, so will Canada. Many experts are concerned that with rising interest rates, home affordability issues and slowing construction over the next two years the boom could be over. Only time will tell.
New York City Second, Montreal Third
New York City ranked second in North America, while Montreal was an extremely close third. New York began to pick up construction in high rise residential towers and buildings back in 2012 and 2013, and it’s expected to exceed Toronto’s capacity as the number one high-rise boom city by 2016.
But, like everything else in real estate, anything could happen. Aliens could invade, the demand for residential and commercial construction could both bottom out, people might decide they’d rather live in the desert in domes made of detritus.
When it comes to these kinds of things anything is possible – probably not probable, but totally within the realm of possibility. Either way, Toronto is on the road to meeting the extraordinary high demand for housing and both NYC and Montreal are playing catch up.
Majority of All High-Rise Construction Residential Buildings
Today the majority of high rise construction is residential buildings – and while commercial high rise construction is on the decline across most of North America (even occupancy has dropped in the double digits), Toronto is one of the few cities on the continent that can make it work.
New residential construction accounts for 70% of the cranes up across the GTA today. Not counting cranes and looking at remodeling and reconstruction, many commercial buildings are being reconfigured for modern use (floors of cubicles transformed into open working spaces, etc.)
Either way, Toronto is expected to stay the construction leader in high-rise development for some time to come.
The Goodale Miller Team is the #1 team in Canada for Century 21 11 years running. Specializing in Oakville luxury real estate including Lakefront homes, infill building lots, condominiums and more. For a listing of luxury homes for sale in the Oakville area visit their homes for sale page here: http://www.goodalemillerteam.com/Homes.aspx