Tracking Ontario's Progress: 19% of 1.5M Homes Built by 2031
Every day, we see new condo structures being planned and erected across Ontario, particularly in the southern areas. Given the pace of condo construction aimed at addressing housing needs, there is a pressing concern within the property management industry about whether there will be enough property managers to oversee these developments effectively.
In 2021, the Ontario government announced its target to see 1.5 million new homes built in Ontario by 2031. In February, The Ontario Real Estate Association (OREA) noted that the province has seen 285,377 housing starts since Premier Doug Ford set the ambitious 10-year goal in 2021.
In 2022, there were 96,000 housing starts and in early 2023 there were 90,000 housing starts, estimates show. While these numbers are quite impressive compared to the previous three decades, they fall short of the 150,000 new units needed on average, per year to meet that 1.5 million-home goal. This is due to a shortage of builders and land, as well as “a widespread bias against development", according to the OREA.
Ontario's Condo Managers Scarce as Development Surges
On the side of property management, the dramatically increased number of newly built condos is causing growing concern. According to the Condominium Management Regulatory Authority of Ontario (CMRAO), approximately 2,500 licensed managers are currently overseeing approximately 950,000 units throughout Ontario. Some within the industry argue that this figure suggests a stretched-thin managerial workforce, indicating a situation exacerbated by an upcoming wave of retirements. In addition, with an increasing number of units slated for occupancy in the near future, there are fears that the shortage of managers will lead to widespread issues for residents and building owners alike.
According to research findings from Urbanation, a real estate consulting firm, Ontario is anticipated to see a remarkable influx of 25,000 new condo units ready for occupancy this year. It will mark a significant milestone in the market.
In an interview with CBS, Craig McMillan, a member of The Association of Condominium Managers of Ontario's (ACMO) board of directors, says both the owners and condominium residents are "going to be negatively affected by the lack of resources."
Condo Management's Significance in Property Maintenance
Condo managers play a crucial role in overseeing the daily functions of a condominium corporation. It is their primary duty to ensure that condos remain in good condition, financially stable, and compliant with regulations. Without proper, adequate condo management, there can be serious neglect in condo maintenance, exposing residents to potential long-term expenses related to legal, financial, and upkeep matters.
When in demand, condo managers can be hurriedly hired to fill the vacancy. However, incompetent managers may cause serious issues. Property not properly handled can lead to costly, time-consuming condo lawsuits. Failure to upkeep the condo property is one of the most common lawsuits as it deeply interferes with condo values. In serious cases, malpractice in condo management can directly cause damage to units, threatening the safety and well-being of residents.
What's tricky about working in condo management is that you need to always be forefront of new updates and regulations. As the primary person working with condo boards and residents, superior communication skills and problem-solving skills are mandatory.
At ARS / Global Emergency Management CA, we offer educational tools crafted for condominium management, equipping staff with the expertise and confidence to engage various stakeholders. Leveraging over 65 years of combined experience, our seasoned professionals deliver invaluable insights to uphold your property's excellence. Contact us today for more information.
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