The Nature of Canadian Condominium Submarkets and Their Effect on the Evolving Urban Spatial Structure

Abstract

The increase in the higher density homeownership options made possible by the introduction of the condominium tenure option can affect the environmental quality of inner-city neighbourhoods and increase the efficiency of the urban and regional spatial structure. The growth of the condominium sector contributes to social welfare by easing the household's transition through the life cycle-related changes in housing needs, by helping young households gain homeownership tenure while improving their housing condition, and by encouraging older households to adjust their space consumption and free their larger houses for family occupancy. The results developed by this empirical study show the Canadian condominium sector to be composed of two submarkets: one is formed by younger families who use their condominium purchase as a step to buying a single family house; the other submarket is formed by older households leaving single family houses to be free of maintenance chores and to gain physical security.