Move over urban exodus, because pied-à-terre is poised to be this year’s real estate buzz phrase. A pied-à-terre is a secondary residence, usually a small condo or apartment, in the city or proximate to the city’s amenities. It’s often used by those living outside of the city who frequent the downtown core, operating as a “second home” for residents.
The idea of a second home in the city isn’t new and pieds-à-terre have cycled in and out of trendiness over the years, explains Toronto real estate agent Carol Bass, but with COVID restrictions lifting and people trickling back into the city for work and play, pieds-à-terre are in the midst of a resurgence.
“It’s almost like we’re becoming New York of the North,” says Bass. “[People] still want that come-into-the-city lifestyle.”
Cut down on your commute and save on rent
Bass currently has a listing for a one-bedroom condo unit on Toronto’s Harbourfront, steps away from the streetcar and Billy Bishop Airport Ferry Terminal. It’s garnered interest as a potential pied-à-terre.
“My unit has a Murphy bed, it’s kind of self-equipped, so that it makes it easier for people not having to worry about a lot of furnishing,” says Bass. “It’s kind of like a turnkey operation.”
A lot of the interest she’s seeing for this particular property is from young professionals who are returning to downtown office work on a full- or part-time basis.
“One gentleman who just looked at the unit on the weekend… he’s with one of the big banks and he has to be in three times a week. He needed something where he doesn’t have to be driving back and forth, especially with the price of gas,” says Bass. “At least it’s an investment as well, because rent is going through the roof.”
It’s not just young professionals that are suited to pied-à-terre properties. Bass thinks that baby boomers may also latch onto the trend. “They’ve downsized, they’ve sold the big home, and maybe they’ve managed to still have some money on the side and they want to invest in a little property,” she says. “The pied-à-terre, I just feel that that’s a market that really hasn’t been tapped to the full potential.”
Be prepared to pay the price
Toronto real estate broker Danielle Desjardins says that while her clients were more interested in outskirt markets like Barrie, Guelph and Peterborough at the start of the pandemic, the draw of city life and the threat of a lengthy commute is now bringing many buyers back to downtown, driving up demand for centrally-located condos.
“They are looking at these small places which, during the pandemic, were not ideal because they were 400-square-foot units that everybody was trying to get rid of. But now they’ve become much more popular,” she says.
This means that condo prices are once again escalating and competition is intensifying. While the average selling price of homes dipped last month, condos and apartment-style units are in increasing demand and the GTA is seeing an uptick in condo sales month over month.
“There is still not enough inventory,” says Desjardins. “The last month there has been an increase in inventory, but it’s still not enough to keep up with the demand. We’re still seeing multiple offers, sold over asking on a lot of condos.”
So you’re interested in a pied-à-terre? Here’s what to look for
A pied-à-terre is traditionally a studio or a one- or two-bedroom unit. But what it lacks in size, it should make up for in location. Ideally, you want something that’s centrally located, with parking facilities or the option to rent a space.
You can also look out for units that are furnished and move-in-ready, meaning that they are already livable and won’t need any major upgrades or repairs. Additionally, with a smaller unit, having a functional, breathable layout and plenty of natural light is especially important.
Finally, you’ll want to factor in any additional expenses associated with property. “This would be considered a secondary home, so you’re going to want to keep it on the budget-friendly side. So, something with lower maintenance fees,” says Desjardins. Some other common expenses to consider are property taxes, parking fees and insurance.
Looking for your own? Here are some cozy properties ready to buy on the market.
39 Brant St.
Located in the heart of King West, this open-concept loft suite is loaded with natural light. It includes 538 square feet, hardwood flooring and a walk-out balcony with sweeping city views. It has a $359.82 monthly maintenance fee.
87 Peter St.
Located in the Entertainment District, this 499-square-foot studio has a functional layout and access to modern amenities, including a fitness room, yoga room, sauna and party room. It has a $235.91 monthly maintenance fee.
650 Queens Quay W.
Located on the waterfront, this bright one-bedroom corner unit is open-concept and 499 square feet. The building is dog-friendly and close to the Billy Bishop Airport Ferry Terminal. It has a $413.53 monthly maintenance fee.
