Calgary Urban Living: The 3-bedroom dilemma
A question I keep getting asked is “Why aren’t more larger 3-bedroom condos being built in Calgary’s City Centre for families?” This was especially the case after my December column about the 2,500 new homes in mid and high-rise towers currently under construction in the City Centre. A flurry of emails followed, many asking how many were suitable for families.
The Hat in East Village has 3-bedroom family friendly homes available for rent.
Downtown’s Children Population Rising
The answer - there are 100+ three bedroom homes included the new residential towers. Cidex’s new West Village Towers will have one, 3-bedroom home on each floor for a total of 84 family-size homes in the two towers across the street from Shaw Millennium Park and next to an LRT station and walking distance to the Bow River. And in East Village, Cidex included 32, three-bedroom homes designed for younger families wanting to live near the Central Library, the river, downtown and St. Patrick’s Island in their “The Hat” at East Village tower.
In fact, the number of children (0 to 19 yrs. of age) living in Downtown is increasing. From 2009 to 2019, Downtown West is up 132%, East Village is up 338%, Downtown Core is up 59%, and Chinatown is up 31%. Only Eau Claire has seen a drop (28%) in the number of children living in the neighbourhood.
And if you look at all the downtown communities collectively , the number of children has increased by 29% over the past ten years.
Cost vs Space
Obviously there are parents who would love raising their family in the City Centre, however the demand just isn’t that great, especially when potential buyers compare the cost of a 1,500 square foot condo to a 1,500+ square foot infill single, double and/or townhome just a few kilometers away.
Sample listing March 18, 2020 of home near Bow River, just a few kilometres from downtown. There are dozens of infill homes available under $750,000.
The cost to build high-rise concrete multi-family buildings is higher for many reasons, like the costs for concrete, elevators, stairwells, emergency systems, complex heating and cooling systems. Plus the cost of a City Centre underground parking stall is about $50,000.
So if you want two that adds $100,000 to the cost of a family home in the City Centre. A two car garage costs about $10,000.
The cost of modern three-bedroom, 1,250 square foot condo (that’s 312 sqft/person, for a family of four) in the City Center is going to be $750,000+ (if you want modern amenities) and comes with condo fees of $750+ per month.
And, even when that is still affordable and acceptable, when push comes to shove, most parents want to have a backyard for the kids and dog(s).
Empty Nesters Love 3-bedrooms
And the “kicker” is even if a developer does build a nice three-bedroom condo, there is no guarantee a family will buy it. In all likelihood, an empty nester couple will be the purchaser, so they can have an office space and an extra bedroom for guests and grandkids to stay. That is exactly what is happened at The Theodore in Kensington. The developer Graywood has included 11, three-bedroom homes (out of 117 homes) starting at $789,900 for about 1,284 square feet including one parking stall. To date, three have sold - all to empty nesters.
So, if there are any families looking for a three-bedroom condo in the City Centre, right across from the Safeway, Riley Park, LRT Station and just a few blocks from Hillhurst School, this would be a good option.
Sample floor plan for new Theodore condos.
There is more than one option for 3-bedroom condo.
Three Bedroom Condos Tough Sell
Five years ago, Knightsbridge Homes included a 40-home, 2 and 3-bedroom family-oriented condo building in the master plan for University City at Brentwood LRT Station. They marketed it for 9 months without getting a single pre-sale of a 3-bedroom home, despite the location being extremely family friendly:
Backing onto Blakiston Park with new children’s playground,
Walking distance to two elementary schools,
Adjacent to Brentwood Mall and two large grocery stores
Within 100 metres of Brentwood LRT Station
The site of these townhomes was originally a going to be a low-rise apartment block with 3-bedroom, family oriented homes on the edge of the park. But due to a lack of demand, the plan was changed.
Last Word
Joe Starkman, President of Knightsbridge Homes, says “At the end of the day, and in my opinion, even though we may see very successful, inner city, 3-bedroom apartment condo projects elsewhere in the world, that is no guarantee it will translate well in Calgary. The reality is the Calgary real estate market will tell us very quickly what works and what doesn’t work, not planning policy.”
Indeed, contrary to what some people think, Calgary developers are building family-sized high-rise homes in the City Centre, as per market demand, and there has been a significant rise in the population of young families in our City Centre over the past ten years.
If you like this blog, you will like these links:
Calgary’s Sweet Spot: The Family Friendly City