Dozens of luxury condo developments hit the Niagara residential market over 2016; a new rapidly growing trend in the Region. The demand for new buildings is rising, and investors are committing to developing new luxury concepts to meet that demand.
The question is: where is this interest coming from? Why are condos now a feasible investment in Niagara, when in years passed they failed to sell enough units to build? The primary driver is the retiree demographic.
Baby Boomers Downsizing
Traditionally, baby boomers were expected to stay in their family homes up until it was time to move to a retirement home. Now, baby boomers are taking advantage of the surge in housing prices or rising home equity, and they are downsizing; rather, they are purchasing luxury condos instead of staying in their larger family homes.
Retirees downsizing from their larger family homes to condos in Niagara is a reflection of other major Canadian cities. The market surge we see now is just the start; in the next 5-10 years it’s expected that the influx will just continue to escalate.
Cities Prioritizing Multi-Residential Developments
Local city planning guides are placing multi-residential buildings, like condos, as high priorities on their suitable development lists. As Niagara prepares for a population growth of over 170,000 by 2041, intelligent planning models must be put in place to account for new residents. High-density builds allow cities like St. Catharines, who are short on residential development land, the ability to accommodate residential growth.
Stats on Buyers in the Condo Market
It’s not just retirees who are showing interest in buying condos. According to Statistics Canada 20% of condo owners are under the age of 35, double the amount of the under 35 demographic who own other dwellings, such as detached homes. This stat is skewed to reflect major markets, however the younger generation is attracted to luxury builds as well.
The Luxury Condo Market in Niagara
The surge we are experiencing from the ‘under 35’ and ‘retiree’ segments of the market has resulted in cities and developers creating new, innovative luxury solutions. Current examples on Niagara condo developments include: Homes by DeSantis’ AquaZul, McGarr Realty’s 77 Yates Condominiums and EverTrust Development Corporation’s Upper Vista Condominiums.
Download the Niagara Condo Development Report here for a comprehensive overview of the on-market condo developments across Niagara.