The Unlyst Blog

Earlier this week the Globe and Mail reported that the average price of a house in Toronto has risen to $613,933 and that the average price of a detached house has risen to $1,042,405. Those are a big numbers.

Low interest rates are a big part of this story. But there’s also a supply story at play here. The low-rise housing market in this city is heavily supply constrained and so we have an environment where people with more money simply outbid those with less money.

The high-rise side of the market, on the other hand, is creating lots of new supply. And in my opinion that’s why its price growth has been more moderate in recent years and why the pricing spread between low-rise and high-rise housing continues to widen.

Assuming these trends continue, one of the things I’ve thought about and written about in the past is whether we’ll eventually seeing a point where high-rise housing actually becomes a more affordable option for families. Because right now, if you’re in the market for a 3 bedroom home, a low-rise house is likely your most affordable option.

Here’s a quick comparison that I did up this morning between a detached house and a high-rise condo:

For the detached house, I assumed 1,800 square feet at a price of $1,042,405. That’s the average price mentioned above. 

For the condo, I assumed a 1,500 square foot 3 bedroom home. I priced it at $650 per square foot (which would be above average for the city) and then added $40,000 for a parking spot. Here you have a slightly smaller condo, but it’s also priced slightly less.

I then compared operating/maintenance costs. For the condo, I assumed a maintenance fee of $0.59 per square foot (which I think is reasonable) and then added $100 per month for electricity. Typically electricity is billed outside of maintenance fees.

For the detached house, I tried to create a similar living situation. I assumed that the owner wouldn’t be cutting their own grass or shovelling their own snow. I assumed that money would be put away each month as a capital reserve for future house expenses (similar to the reserve fund in a condo). And I assumed a gym membership since most condos have a gym. I ignored property taxes and insurance.

The detached house still works out to be a less expensive to operate in this scenario, but not by much. Overall, the two appear quite comparable. Which is why I wouldn’t be surprised if we see a tipping point in the future where all of a sudden families start finally adopting the mythical 3 bedroom condo.

Juliette aux ComblesL. McComber

Remodeling of a third-floor single-family dwelling in Plateau Mont-Royal.

Over five feet high, two distinct sloped structures made with thick layers of tar and gravel formed the roof of this old duplex built in 1880. Replacing this structure with an insulated open-truss roof liberated impressive 13-foot ceilings.

E/C House, Pico Island, Portugal by SAMI-arquitectos | via

From the architect: A ruin was the starting point for the design of a holiday house in the island of Pico. The project came from the will to maintain a ruin and thinking of a house that would value it, a house that could be modelled to it and take advantage at the same time, offering the most diverse and complex possibilities of living than the former typology.

Since the building is approached at the level of the covering, because of the slope of the land, we designed all the covering of the project as if they were decks, allowing to be used as sitting places or for contemplation.

The house, modelled inside the walls of stone, was designed with generous openings, for light to come inside and to contemplation of the landscape. These openings are sometimes lined up, and sometimes not, with the former openings of the ruin, creating new frames and relations with the original limits of the house.

Photography: Paulo Catrica