Dive Brief:
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Toronto’s biggest-ever building boom is evidenced by the 100,000 condominium units currently under construction.
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But building practices that some have referred to as “shoddy” have caused problems like water leaks and poor insulation in several of the Canadian city’s new skyscrapers, The Financial Post reports. Glass panels have fallen off of more than a dozen towers.
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Still, demand for multifamily housing remains strong, with condo prices rising 25.7% in five years and a rental vacancy rate at just 1.8%.
Dive Insight:
University of Toronto professor Ted Kesik told The Financial Times that some of Toronto’s towers may eventually deteriorate into “urban slum[s]. … The life cycle is clear. They are OK for the first five years; they gradually deteriorate by year 10 … and don’t even reach year 20 before significant remedial work needs to be done.”