Right now, in Toronto, there are upwards of 120,000 purpose-built rental suites in the development pipeline. This is according to a June 2024 Toronto City Planning report. If all of these suites are built, they will add much-needed supply to address the city’s housing shortage.
With all of these suites in various stages of development, how do developers decide exactly what to build? How do developers maximize value and still create spaces that include features and amenity spaces that residents want now and in the future?
Insights from the simplydbs 2024 Canadian Multi-Residential Satisfaction Study (CMRS) are powered by some 24,000 responses by residents surveyed between May and July of this year. Diving into the data can give developers and managers a better understanding of what residents want now and also sheds light into their preferences over time.
Balconies a major cost, are they worth it?
Altus Group estimates that balconies add an extra $8,000 to $20,000 per suite onto the construction cost of a residential building.
There has been an increase of attention toward luxury shared outdoor spaces, but don’t give up on the balcony too quickly: 83 per cent of residents would prefer a balcony (either Juliette or traditional) over common luxury shared space.
From 2024 data that simplydbs has collected, we now know on average, when given a choice between a traditional balcony with less interior space or a Juliette balcony with more interior space, 51 per cent of respondents would choose to rent a suite with a Julliette balcony and larger suite.
In theory this saves the developer the initial cost of building a balcony as well as upkeep and eventual replacement costs.
The 2023 CMRS study indicated respondents felt they needed more space than they currently had.
Larger suites vs. building amenities
We wanted to understand this more, so in 2024 simplydbs asked a series of questions that zeroed in on suite size. The 2024 study asked whether residents wanted more space but could not afford to move: 54 per cent selected yes, they needed more space but could not afford to move.
It seems many would trade a lot to have a larger suite.
In fact, 62 per cent of respondents would choose to live in a building that had larger suites with fewer amenities versus living in a small suite in a building with a lot of amenities. The age group of respondents had little impact on their preference for space over amenities. With one exception. The only age grouping that had a preference for amenities over space were 19 to 24 years old.
When looking at income levels, only those making under $30,000 per year chose amenities over size. Our data shows an inverse relationship between income and amenities: On average, the higher the resident’s income, the less they wanted amenities over more space.
There are always demographic variables to consider when analyzing the data but the trend was clear. Overall, more space was valued over a lot of other offerings.
Building design features which resident value
What are some of the other kinds of building design features that prospects and residents value?
We are seeing strong preferences for investments in areas that improve the wellness and comfort of residents.
2024 CMRS data has identified that residents value efforts by housing providers to put into place barriers to mitigate sounds and smells travelling from one suite to another.
It should also be noted thermal comfort receives a lot of attention from residents. Consistently the ability to control the temperature in their suites ranks high among residents.
In a growing number of cities across North America, developers are able to reduce the number of spaces available in their buildings at a significant cost reduction.
The majority of those surveyed however, still want parking with 55 per cent stating they need at least one parking spot. Just 16 per cent responded they do not have a car, and are not planning to purchase one, while seven per cent stated they would give up a parking space if they had access to a car share program.
As far as electric vehicles go, just two per cent of respondents have an EV while 58 per cent are either planning to buy one or are considering buying one.
The multiresidential industry puts a lot of money into supplying parking facilities to its residents and it is necessary to know where parking demand is headed. Parking allocation and EV preferences are trends we will be monitoring over the foreseeable future.
The CRMS is the largest Canadian study of its kind, collecting over one million data points from residents across the country. Analyzing this data enables us to gain a clearer understanding of the multi-res resident and provides the tools needed by the industry to create living environments that residents are looking for.
