Why are developers building so many condominiums instead of houses?
There are three primary reasons why there are more high-rise condominium apartments being built today than years prior: government policy, land values and consumer demand.
The Ontario government set a policy direction for the GTA and the Golden Horseshoe in 2006 and updated it in 2017 . This policy is called the Growth Plan. The government set requirements for intensification for municipalities, in particular in urban centres and near transit and transit stations. This means trying to get more people and homes into a smaller space through increased density.
When it comes to land values, the land around urban centres and major transit stations is too valuable to build anything other than mid to high-rise condominiums and have the prices of those units remain affordable for the average middle-class family.
Many of the people moving to the GTA want to live downtown and with the strong demand, combined with the previous two points, the only mechanism to satisfy this demand is to build up in the form of high-rise condominiums.