Demand for Smaller Condos is Growing in US & Metro Vancouver Canada

The Canadian Mortgage and Housing Corporation has found troubling data that shows that our housing markets in Canada are shrinking, as our population continues to grow.

Because major city centres like Vancouver homes for sale and Toronto will not be back to affordable levels, many Canadians are flocking towards living spaces that are much smaller.

The housing market is fuelled by the Millennial generation, and these buyers aren’t slowing down. As a result, condominiums are an ideal Plan B for people on a budget. These buyers don’t have to worry about upkeep or exterior maintenance, and they can afford to live in upscale resort areas without breaking the bank. In the long run, this trend will continue to grow, as more Millennials begin to buy homes.

Quick Summary

The US and Canada are demanding smaller condos, according to recent reports. Condos are cheaper than single-family homes, rising real estate prices, and demographic trends favouring smaller units. Condo towers will continue to dominate major city housing markets.

As a result, my research indicates that the demand for smaller condos is growing in Canada. With rising prices of real estate, smaller units will provide a much-needed relief for incoming immigrants. Smaller condos are also more desirable to investors. Since smaller units are easier to rent, there is less vacancy time between leases. Besides, the year-over-year percentage of the value of a smaller condo is higher than that of a larger one.

As our population continues to grow CMHC is forecasting that out of the nine Canadian housing markets, eight are reporting that the home sizes are getting smaller and smaller as the years continue.

Because we have an affordability issue it places significant pressure in the next decades to come to make units that are affordable, therefore, providing relief for smaller and smaller units for those immigrating to Canada and desirable areas worldwide like much of the United States.

Vancouver BC, Canada, condos for sale have become smaller and smaller in square footage and total living area. In other excessive markets like Toronto apartment sizes have been getting smaller for many decades. Canada has one of the lowest housing affordability in the world and real estate in Vancouver makes up one of the most expensive places in the world, with Toronto not far behind.

The Main Culprit for Smaller Condos in Vancouver – Inflation

Housing affordability is getting our and out of reach of many Canadian families. In fact, we have been at a 20-year low. Despite the amount of overbuilding and government measures to control the pricing of real estate in Vancouver, the main culprit remains the federal government. This includes eastside condos and Vancouver condosnorth vancouver condos and west vancouver condos. We firmly believe this culpability statement to be truthful worldwide, not just in Canada. The federal banks of the world have printed money by lowering interest rates to unprecedented levels, thus eroding the affordability of many Canadians and world citizens by stimulating inflation.

No, this is not the inflation rate you read in the newspapers, where it’s typically quoted between 2% and 4%. This is inflation that goes unreported with items that are important to everyday living. For example, important items like the cost of gasoline, the cost of rent and the cost of housing are kept out of the world’s governments’ calculation of the inflation rate. However, these cost considerably make up a huge percentage of our daily consumption.

This is why Vancouver BC Canada housing prices have gone away out of economic fundamentals. Measures such as income overpricing ratio simply have become out of date because they no longer account for the massive influx of money being printed.

Population growth has also considerably increased apartment prices in Vancouver and Toronto. Home buyers are consistently feeling the pressure in the past 20 years. With more immigrants arriving in Canada each and every day, the Vancouver real estate market will continue to feel the pressure.

Whether you’re searching for five bedroom homes for sale in Vancouver (read mansion) or a modest Vancouver condominium with a one bedroom or two bedrooms, you and the average home buyer will continue to feel pressure and the square feet of living space in those units will continue to shrink in size.

Government restrictions also to blame

Price Waterhouse Coopers reports that the supply is now being held back because of government policy. This is because builders cannot sell their units because buyers cannot qualify for mortgages due to the federal mortgage stress test. Consequently, builders cannot get financing to get construction off the ground because they need 60% in order to get financial approval to build. The consequence is that in Canadian apartments are consistently getting more and more expensive because Governments are inadvertently holding back supply. And to boot, all of this is happening the face of over 30,000 immigrants arriving in BC each year alone.

Canadian and Vancouver single family homes getting bigger and pricier:

Even though the Vancouver real estate market has slowed down it is unlikely that we will see, affordable levels ever again because of runaway inflation. As governments worldwide it is in effect causing a lack of housing supply and affordability.

This is especially the case with Vancouver housing like single family homes, houses, duplexes and triplexes . If you just examine some of our very own Metro Vancouver mls listings and property search channels you will see just how much West Vancouver homesEast Vancouver Homes, as well as North Vancouver Homes and other real estate in general.

Non-stop Demand for Condominiums

Real nominal demand for real estate in Vancouver and Toronto will not stop and Canadians will continue to face all of these ongoing pressures. Therefore, homes are getting smaller and smaller. Typically, you will find studio units coming closer and closer to 250 square feet. In Surrey BC, Canada, a small development in Whalley came up with units that are labelled as micro-units, selling in the record numbers in 2016. The units were sold between 200 square feet to 400 square feet maximum.

Meanwhile, Canadian and Vancouver in areas like Point Grey are getting larger.

Canada will experience similar smaller units as housing worldwide begins to decline in affordability and rising prices of condominiums continue to be a new paradigm. Condominiums in Metro Vancouver are getting microsites sized based on the data released by Statistics Canada. The new trend of smaller apartments in the late 1990s saw many new developments with multiple bedrooms, where people could live with families. Such is the case with many other countries around the world in the 1990s.

MICRO CONDOS AT RECORD LEVELS OF CONSTRUCTION IN CANADA

However, now studios with 0 bedrooms are at record levels of construction, and it speaks to the future and current demand, where the population is being squeezed by an accelerating rate of inflation. This will be especially true and has been true as Vancouver becomes more and more densely populated.

This means, however, that Vancouver BC will not be a place where one could raise a family. Families in BC may have to move out of the city to suburban areas to be able to have a unit that is family-friendly. Governments are coming to the same conclusion. In the city of Vancouver, there have been allowances of recent policies whereby developers can build micro units to create more affordable condos (read micro-sized units). The envisioned Metro Vancouver housing policy will enable developers to build apartment attached units as small as 300 square feet to suit the new demographic changes coming.

Census data from 2016

The second set of data for the 2016 census has been released. Here’s what the numbers are telling us. For the first time in census history, there are more seniors than children living in Canada. There are 5.9 million people age 65 and up slightly more than the 5.8 million of children under 14. This is why Statistics Canada says the post-war baby boomers are getting older and people are having fewer babies. The agency says the ageing of Canada’s population is only going to accelerate over the coming decades.

As more baby boomers march towards retirement the census also found that there are two people about to retire from the workforce for every one person to join it. In terms of where people are living 53.6% of dwellings in Canada are detached houses. But that’s not the case in the country’s biggest cities like in Vancouver, Montreal, Victoria, Toronto and Quebec City, more than half of the dwellings are apartments, condos, or row houses. And the trend is for those dwellings to get smaller.

Sources:

https://financialpost.com/personal-finance/mortgages-real-estate/housing-supply-needs-mean-more-condos-benefiting-renters-and-investors-alike

https://www.urban.org/urban-wire/housing-market-needs-more-condos-why-are-so-few-being-built

Active
$908,000
1208 933 HORNBY ST, Vancouver Apartment for sale, MLS® R2835460

Beds: 2Baths: 2Built in 2005856 sqft

2 hours ago

Beds: 2Baths: 2Built in 2005856 sqft

"Electric Avenue" quality built by Bosa. Bright and spacious 2 bedrooms...

$908,000

MLS®: R2835460 Angell, Hasman & Associ...

2 hours ago

Active
$768,000
2602 1289 HORNBY ST, Vancouver Condos for sale, MLS® R2835438

Bed: 1Bath: 1Built in 2022461 sqft

2 hours ago

Bed: 1Bath: 1Built in 2022461 sqft

Welcome to One Burrard Place- a 60 storey tower completed in 2022, located...

$768,000

MLS®: R2835438 Royal LePage Little Oak Rea...

2 hours ago

Active
$620,000
406 1496 CHARLOTTE ROAD BC, North Vancouver, R2835435

Bed: 1Bath: 1Built in 2021570 sqft

2 hours ago

Bed: 1Bath: 1Built in 2021570 sqft

Welcome to Brooklynn, a boutique development of 63 homes that pair...

$620,000

MLS®: R2835435 Magsen Realty Inc.

2 hours ago

Active
$798,800
253 1100 E 29TH STREET BC, North Vancouver, R2835478

Beds: 2Bath: 1Built in 2002828 sqft

4 hours ago

Beds: 2Bath: 1Built in 2002828 sqft

Popular Highgate community! 2 spacious bedrooms plus den/office highly...

$798,800

MLS®: R2835478 Luxmore Realty

4 hours ago

Active
$1,344,900
503 2235 E BROADWAY BC, Vancouver, R2835447

Beds: 3Baths: 2Built in 20231052 sqft

4 hours ago

Beds: 3Baths: 2Built in 20231052 sqft

Discover refined urban living in Popolo, Grandview-Woodland’s new emblem...

$1,344,900

MLS®: R2835447 Sutton Group-West Coast Rea...

4 hours ago

Active
$729,000
1703 5189 GASTON ST, Vancouver Apartment for sale, MLS® R2835409

Beds: 2Baths: 2Built in 1996759 sqft

5 hours ago

Beds: 2Baths: 2Built in 1996759 sqft

***OPEN HOUSE DECEMBER 2ND/3RD, 2-4PM*** SE corner 2 bdrm & 2 bath...

$729,000

MLS®: R2835409 Zolo Realty

5 hours ago

Active
$259,000
1106 1251 CARDERO ST, Vancouver Condos for sale, MLS® R2835385

Bed: 1Bath: 1Built in 1968436 sqft

7 hours ago

Bed: 1Bath: 1Built in 1968436 sqft

Lowest price in the West End. Estate Sale. Affordable studio with separate...

$259,000

MLS®: R2835385 Maude, MacKay & Company...

7 hours ago

Active
$969,000
1403 1060 ALBERNI ST, Vancouver Condo for sale, MLS® R2835367

Beds: 2Baths: 2Built in 1988986 sqft

8 hours ago

Beds: 2Baths: 2Built in 1988986 sqft

Welcome to The Carlyle! In the heart of downtown Vancouver, just steps to...

$969,000

MLS®: R2835367 Oakwyn Realty Ltd.

8 hours ago

Active
$1,380,000
3103 1238 MELVILLE ST, Vancouver Condos for sale, MLS® R2835336

Beds: 3Baths: 2Built in 19951256 sqft

13 hours ago

Beds: 3Baths: 2Built in 19951256 sqft

High atop the 31st floor of Coal Harbour's Pointe Claire, there is a...

$1,380,000

MLS®: R2835336 RE/MAX Select Realty

13 hours ago

Active
$510,000
206 288 E 14TH AVE, Vancouver Condo for sale, MLS® R2835334

Bed: 1Bath: 1Built in 1983485 sqft

13 hours ago

Bed: 1Bath: 1Built in 1983485 sqft

Calling all first time buyers and savvy investors! Ideally located just a...

$510,000

MLS®: R2835334 Stilhavn Real Estate Servic...

13 hours ago


Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.

Lets Have a Smart Conversation.

Let's Chat! Looking for a REALTOR© who can exceed your expectations? Look no further than Richard Morrison! His mission is to serve without limit & provide solutions that cater to your core needs.
* 20+ Years of Experience
* Medallion Member
* RE/MAX Hall of Fame

Your Privacy is important to us. View our Privacy & Data Collection Policy.

Latest Vancouver Listings

Active
$2,698,800
2 432 E 1ST ST, North Vancouver Houses for sale, MLS® R2835487

Beds: 5Baths: 5Built in 20242698 sqft

1 hour ago

Beds: 5Baths: 5Built in 20242698 sqft

Experience luxury in this 5-bed, 5-bath, 2700 sqft home—a blend of...

$2,698,800

MLS®: R2835487 Oakwyn Realty Ltd.

1 hour ago

Active
$908,000
1208 933 HORNBY ST, Vancouver Condos for sale, MLS® R2835460

Beds: 2Baths: 2Built in 2005856 sqft

2 hours ago

Beds: 2Baths: 2Built in 2005856 sqft

"Electric Avenue" quality built by Bosa. Bright and spacious 2 bedrooms...

$908,000

MLS®: R2835460 Angell, Hasman & Associ...

2 hours ago

Active
$768,000
2602 1289 HORNBY ST, Vancouver Condo for sale, MLS® R2835438

Bed: 1Bath: 1Built in 2022461 sqft

2 hours ago

Bed: 1Bath: 1Built in 2022461 sqft

Welcome to One Burrard Place- a 60 storey tower completed in 2022, located...

$768,000

MLS®: R2835438 Royal LePage Little Oak Rea...

2 hours ago

Active
$620,000
406 1496 CHARLOTTE ROAD BC, North Vancouver, R2835435

Bed: 1Bath: 1Built in 2021570 sqft

2 hours ago

Bed: 1Bath: 1Built in 2021570 sqft

Welcome to Brooklynn, a boutique development of 63 homes that pair...

$620,000

MLS®: R2835435 Magsen Realty Inc.

2 hours ago

Active
$2,400,000
660 DUCHESS AVE, West Vancouver Home for sale, MLS® R2835470

Beds: 2Built in 19452352 sqft

4 hours ago

Beds: 2Built in 19452352 sqft

investor attention priced close to assessment price, basement is ground...

$2,400,000

MLS®: R2835470 Royal Pacific Lions Gate Re...

4 hours ago

Active
$2,820,000
1595 W 66TH AVENUE BC, Vancouver, R2835462

Beds: 3Baths: 2Built in 19451130 sqft

4 hours ago

Beds: 3Baths: 2Built in 19451130 sqft

Charming, well maintained, bungalow on a 50'x121.98' NW corner lot at 66th...

$2,820,000

MLS®: R2835462 LeHomes Realty Premier

4 hours ago

Active
$1,950,000
2136 FRANKLIN ST, Vancouver Home for sale, MLS® R2835443

Beds: 4Baths: 3Built in 19132292 sqft

4 hours ago

Beds: 4Baths: 3Built in 19132292 sqft

Charming circa 1913 Heritage B, this 2292 sq.ft home has 3 suites, comes...

$1,950,000

MLS®: R2835443 RE/MAX Select Realty

4 hours ago

Active
$798,800
253 1100 E 29TH STREET BC, North Vancouver, R2835478

Beds: 2Bath: 1Built in 2002828 sqft

4 hours ago

Beds: 2Bath: 1Built in 2002828 sqft

Popular Highgate community! 2 spacious bedrooms plus den/office highly...

$798,800

MLS®: R2835478 Luxmore Realty

4 hours ago

Active
$1,344,900
503 2235 E BROADWAY BC, Vancouver, R2835447

Beds: 3Baths: 2Built in 20231052 sqft

4 hours ago

Beds: 3Baths: 2Built in 20231052 sqft

Discover refined urban living in Popolo, Grandview-Woodland’s new emblem...

$1,344,900

MLS®: R2835447 Sutton Group-West Coast Rea...

4 hours ago

Active
$6,299,000
2175 W 32ND AVENUE BC, Vancouver, R2835437

Beds: 5Baths: 6Built in 20154486 sqft

4 hours ago

Beds: 5Baths: 6Built in 20154486 sqft

Nestled in Quilchena, this stunning home offers panoramic vistas. Three...

$6,299,000

MLS®: R2835437 Sutton Group - 1st West Rea...

4 hours ago

Active
$1,828,000
1582 ROSS RD, North Vancouver Homes for sale, MLS® R2835423

Beds: 4Baths: 3Built in 19562282 sqft

4 hours ago

Beds: 4Baths: 3Built in 19562282 sqft

Beautifully updated home with a 2 bed suite, just a few steps from Lynn...

$1,828,000

MLS®: R2835423 Stilhavn Real Estate Servic...

4 hours ago

Active
$2,188,000
3492 E 4TH AVE, Vancouver Home for sale, MLS® R2835416

Beds: 4Baths: 4Built in 20062201 sqft

4 hours ago

Beds: 4Baths: 4Built in 20062201 sqft

Nice and Quiet central location in Renfrew Area. Very well kept home with...

$2,188,000

MLS®: R2835416 Selmak Realty Limited

4 hours ago

Active
$729,000
1703 5189 GASTON ST, Vancouver Condo for sale, MLS® R2835409

Beds: 2Baths: 2Built in 1996759 sqft

5 hours ago

Beds: 2Baths: 2Built in 1996759 sqft

***OPEN HOUSE DECEMBER 2ND/3RD, 2-4PM*** SE corner 2 bdrm & 2 bath...

$729,000

MLS®: R2835409 Zolo Realty

5 hours ago

Active
$1,699,000
1579 RUPERT ST, Vancouver Home for sale, MLS® R2835407

Beds: 4Baths: 4Built in 20231748 sqft

6 hours ago

Beds: 4Baths: 4Built in 20231748 sqft

Brand new back duplex w/stunning curb appeal sitting across lush greens of...

$1,699,000

MLS®: R2835407 Sutton Group-West Coast Rea...

6 hours ago

Active
$1,899,000
1483 TILNEY MEWS BC, Vancouver, R2835400

Beds: 4Baths: 4Built in 20121977 sqft

6 hours ago

Beds: 4Baths: 4Built in 20121977 sqft

Fantastic unit at Granville Mews in South Granville area. Home is barely...

$1,899,000

MLS®: R2835400 Sutton Group-West Coast Rea...

6 hours ago

Active
$1,498,000
380 E WOODSTOCK AVENUE BC, Vancouver, R2835396

Beds: 3Baths: 4Built in 20231452 sqft

6 hours ago

Beds: 3Baths: 4Built in 20231452 sqft

$1,498,000

MLS®: R2835396 Sutton Group-West Coast Rea...

6 hours ago

Active
$1,488,000
381 E 41ST AVE, Vancouver Real Estate for sale, MLS® R2835388

Beds: 3Baths: 4Built in 20231452 sqft

7 hours ago

Beds: 3Baths: 4Built in 20231452 sqft

$1,488,000

MLS®: R2835388 Sutton Group-West Coast Rea...

7 hours ago

Active
$259,000
1106 1251 CARDERO ST, Vancouver Condo for sale, MLS® R2835385

Bed: 1Bath: 1Built in 1968436 sqft

7 hours ago

Bed: 1Bath: 1Built in 1968436 sqft

Lowest price in the West End. Estate Sale. Affordable studio with separate...

$259,000

MLS®: R2835385 Maude, MacKay & Company...

7 hours ago

Active
$969,000
1403 1060 ALBERNI ST, Vancouver Condo for sale, MLS® R2835367

Beds: 2Baths: 2Built in 1988986 sqft

8 hours ago

Beds: 2Baths: 2Built in 1988986 sqft

Welcome to The Carlyle! In the heart of downtown Vancouver, just steps to...

$969,000

MLS®: R2835367 Oakwyn Realty Ltd.

8 hours ago

Active
$2,490,000
1420 PARK DRIVE BC, Vancouver, R2835392

Beds: 7Baths: 4Built in 19742299 sqft

8 hours ago

Beds: 7Baths: 4Built in 19742299 sqft

Bringing urban chic to your neighbourhood. This home has been upgraded...

$2,490,000

MLS®: R2835392 Macdonald Realty Westmar

8 hours ago

Start your search with Richard Morrison, Top Award Winning Vancouver Realtor:

Contact Richard Morrison Top Vancouver Realtor today to find a Vancouver real estate and Vancouver condos for sale. This includes eastside residences and eastside apartment for sale. Also check out West Vancouver homes for sale or maybe an West Vancouver condos for sale. If you prefer North Shore, take a look at our listings in North Vancouver homes for sale and North Vancouver condos for sale.

Vancouver East Houses

Collingwood
Downtown East
Fraser
Fraserview
Grandview
Hastings
Hastings Sunrise
Killarney
Knight
Main
Mt Pleasant
Renfrew Heights
Renfrew
South Van
Victoria

Vancouver West Houses

Arbutus
Cambie
Dunbar
Kerrisdale
Kitsilano
McKenzie Heights
Marpole
Oakridge
Point Grey
Quilchena
SW Marine
Shaughnessy
South Cambie
South Granville
University
West End

Vancouver East Apartments

Champlain Heights
Collingwood
East Downtown
Fraser
Grandview Woodland
Hastings
Hastings Sunrise
Killarney
Knight Condos
Main
Mount Pleasant VE
Renfrew Heights
Renfrew
South Marine
South Van
Strathcona
Victoria VE

Vancouver West Condos

Arbutus
Cambie
Coal Harbour
Downtown VW
Dunbar
Fairview
False Creek
Kerrisdale
Kitsilano
Marpole
Mount Pleasant VW
Oakridge
Point Grey
Quilchena
S.W. Marine
Shaughnessy
South Cambie
South Granville
Southlands
University
West End VW
Yaletown
img

Richard Morrison

My name is Richard Morrison and I aim to empower people to buy and sell real estate in the most effective way possible. I can service all of your Metro Vancouver real estate needs & beyond. I specialize in Vancouver, North Vancouver, West Vancouver, Vancouver West, Richmond, Burnaby and other areas in the Lower Mainland BC Canada. You can be assured that whether buying or selling your home, I will get the job done. I offer a full compliment of real estate services with 15+ years of experience. About Richard Morrison

Related posts

How do I protect my home sale from Shadow Flipping?

Vancouver's shadow-flipping has been a hot topic in the media in British Columbia, Canada. But are...

Continue reading
by Richard Morrison
  • News

Real Estate Trends to watch for as BC Reopens

It's clear that the British Columbia real estate market has been booming over the past...

Continue reading
by Richard Morrison
  • News

Home Staging Vancouver: How to Stage Your Property Without a Huge Expense

Home staging is the process of enhancing the appearance of a property to make it more appealing to...

Continue reading
by Richard Morrison