The Bank of Montreal published a report this week that says Toronto condo boom is starting to slow down.
According to the report, construction began on a record low number of new condo units this past summer.
In 2014, construction began on 16,500 condo units during a period between July and September. In contrast, during the same period in 2012, a staggering 40,000 new units were started.
“Is the bulk of Toronto condo building behind us?” asks Robert Kavcic, one of the authors of the report. “It certainly looks that way.”
Urbanation, a website that styles itself as “the authoritative source on Toronto’s condominium market,” backed up Kavic’s report, saying that it noticed a drop in the number of condo rental listings.
According to the report, the federal government’s tightening of Canada’s mortgage laws is to blame for the slow down. In 2012, the government made 25 years the longest amortization period one could get on a mortgage, and also made it a requirement that homebuyers commit to larger down payments.
Still, for everything BMO’s report says, 56,000 units still under construction in Toronto, and both Kavic and Urbanation predict that the the city might see another boom in 18 months.
In other words, this city still has a lot of glass towers in its near future. [via CBC]