Toronto’s condo boom: We blew it

After soaring highs, there are now signs that Toronto’s condo boom ain’t what it used to be.

I don’t want to get doom-and-gloom about it. I’m not expecting a full-scale crash. But it was never reasonable to think that the frantic pace of construction in this city could continue forever.

But whatever the future holds for the city’s condo market, now is probably a good time to look back on Toronto’s long boom and face the facts: we blew it.

The period was an opportunity, and — with few exceptions — Toronto failed to capitalize.

For proof, look no further than development hot spots like Liberty Village or CityPlace. The city brought thousands of people into these new neighbourhoods but — even with boatloads of cash changing hands — wasn’t able to muster much in the way of new public spaces, affordable housing units or improvements to local transit.

Instead, those new residents were squeezed onto the same level of transit service that existed before they moved in. And even as thousands of new market housing units go up, the city’s waiting list for affordable housing grows each year.

And funnily enough, it’s only now —with signs that the market may be slowing — that city hall is getting around to substantially increasing the development charges that builders pay to the city to fund new infrastructure. Toronto’s rates have lagged significantly below the GTA average, with developers in cities like Markham and Mississauga paying up to three times as much on a per-unit basis.

It hasn’t all been missed opportunities. In itself, the condo boom meant more people were moving into dense neighbourhoods and seeking urban lifestyles. That’s an environmental win. And the hot market was an essential part of moving important projects forward, such as the revitalization of Regent Park and the ongoing waterfront rehab.

But it’s hard not to think we could have done better. Some politicians are fond of saying that cities should be run like a business. But, following that logic, it’d seem that a booming real-estate market and a growing population would be signs that business is good.

So why is it that Toronto politicians have spent much of the boom times screaming about budget crises and trying to scrounge together cash to fix deteriorating infrastructure?

There’s a disconnect there that needs to be addressed. If the latest indication of slowing holds, we may have missed our chance with this boom. Let’s do better with the next one.