Millennials are in a tough spot.
They want to live in close proximity to all of downtown life’s amenities – but can’t keep up with the increasing cost of buying or renting a condo in Canada’s urban centres.
Micro-condos, otherwise known as shoebox apartments or even nanosuites, might be the solution.
Generally regarded as a dwelling with 500 square feet or less of space, micro condos are flooding the Canadian real estate market this year to cater to a growing number of young professionals in flux between lifestyle and affordability. Nearly 3000 of these units are currently under development in Toronto; several 290-square foot units are fetching around $250,000.
In Vancouver, a 248-square foot unit is available to rent for around $1000. Yes, that’s expensive for a home the size of roughly two parking spaces, but it’s an affordable alternative to the city’s almost double average downtown rental price.
Still, it’s still too early to tell if the trend will catch on. Factors ranging from securing a mortgage to inconclusive evidence of demand are currently playing out as developers literally lay the groundwork for these units.
“This is something that the market and developers are going to be paying very close attention to in 2015,” said Urbanation (condo research firm) Vice President Shaun Hildebrand. “Sometimes we don’t know how strong demand is until we’re shown the supply.”
Is micro condo living something you would consider?
Cover photo courtesy Rentfluff.com