There are many 4 storey elevator buildings being built with 10 to 30 units than sell for under $500 a square foot. I don't think the cost of an elevator is top of mind when a Toronto developer decides on speed over number of shafts. I would think it's the loss is saleable square footage on each floor.
There's savings in the standard finishes and appliances used in these jr one bedroom units being built in Toronto. It's tough to pay so much and not have the quality the brothers would approve.
This is the constant issue with the current housing debate. We are in a crisis. Anything and everything should be looked at to reduce housing costs, increase saleable space, increase speed of construction.
This means things that cost money or make developments not pencil out:
- As of right zoning (8%)
- Parking minimums (5%)
- Amenity requirements (2%)
- Development Charges (7%)
- Permit speeds (5%)
- FSI (2%)
- Stair and elevator requirements (2%)
- Height restrictions (1%)
- Set backs (3%)
- Angular plane (4%)
- Property tax (2%)
- Tax reductions (3%)
- Incentives (3%)
- Tax increments (4%)
- Vacant taxes on res. and commercial (3%)
The main issue I see when entering these conversations is that a conversation starts on one of the above, and the counter argument is always "this one item won't fix housing". 100% correct, but if you fix all the things above and more you will have an impact. It still might not "solve" the crisis. But it will put a dent, and when the market becomes viable for some of the above options, we will again see supply come online such that the next time demand outstrips supply the impact on housing prices won't be so staggering.
Just for fun I added random percentage values to the above solutions to help illustrate that not one item solves it, but using multiple zoning reform and building code changes can together make a significant impact.
www.nytimes.com
