According to a report from TD Economics, condos are outpacing other housing in the Greater Toronto Area. For every three condos created in the GTA, only one detached home is built.

Condos in high-rise buildings have accounted for 60 per cent of the supply of new homes in the region since 2011. This trend represents a 32 per cent increase since 2000, and is expected to continue as new completions enter the market.

In 2014 and 2015, a combined 70,000 units are slated to be completed. Factors affecting the increase in condo supply include changes to government regulations, lack of available infrastructure and high land costs. Given the advantages of condo versus detached home building, many builders have seen greater potential for a return on their investment in the condo sector.

However, despite the increase in high-rise condo supply, new condos are finding it difficult to compete with those on the resale market. Since the inception of the harmonized sales tax in 2009, builders have found ways to maintain affordability within the condo sector through overall reduction in square footage. Condos constructed prior to 2009 are generally larger and more affordable. Low-rise units also remain in short supply.

Over the next several years, economists expect the condo market to bear the brunt of a predicted housing slowdown, which will see home sales and prices gradually cool.