What to know
- Canadian condo units have gotten significantly smaller, as developers face higher construction costs and weaker demand.
- More than 80 per cent of surveyed Canadian renters said they consider a balcony an essential feature.
- Balconies can give residents additional space for dining, working, relaxing and entertaining, particularly in compact units.
- An expert says not every balcony provides the same value, as spaces need to be large and functional enough for residents to actually use them.
- The expert says a balcony around 1.5 metres by three metres can provide enough room for a table and several chairs.
As condo sizes continue to get smaller in Canada, balcony spaces have ceased to be a mere convenience to become a way of making homes more liveable for many renters and buyers.
Following a boom in the real-estate market in the early 2020s, the condo market has been facing a significant slow down in the past few years. Although housing starts have surfaced six per cent last year compared to the year before, many condos are now sitting in the market, as buyers hesitate on the sidelines, according to the Canada Mortgage and Housing Corporation (CMHC).
As demand weakens, developers in Canada’s metropolitan areas are shifting their priorities. In Toronto, many are now avoiding larger, ownership-based projects to focus on smaller units fit for renters, according to the CMHC. Similar trends are observed in other major cities like Vancouver and Montreal.
Especially those living in Canadian urban centres might have noticed that new condos appear to have become smaller than older units. According to the Municipal Property Assessment Corporation (MPAC), average condo units have shrunk by 35 per cent in the early 2020s when compared to the mid-90s.
Antonio Manchisi, VP of Construction at Sapphire Balconies, said the focus on units with smaller square footage comes as developers navigate financial pressures and weaker demand.
“Higher construction costs and affordability pressures are going to drive smaller unit sizes. That’s just what it is, right? Things will get bigger when they get more expensive for the average person,” he said.
But as buyers and renters face this shrinking effect, many are looking outdoors for a way to optimize their living spaces.
Why balconies become an essential feature
Simplydbs’s 2025 Canadian Multi-Residential Satisfaction Study revealed that more than 80 per cent of surveyed Canadians renters said they consider balconies an essential feature of their unit, preferring them over shared outdoor spaces. Meanwhile, 94 per cent of renters consider balconies either essential or nice to have, and 79 per cent said they wouldn’t give up their balconies for lower rent or more shared spaces.
Manchisi said the growing demand for balconies come as renters attempt to navigate smaller units, trying to take advantage of every square foot.
“In a compact suite, balconies are going to serve as a multitude of different things. It’s an outdoor dining area. It’s an outdoor workspace. It’s an area [where] you can go and relax. It’s a patio for entertaining,” he said. “Well-designed balconies can make the suite feel bigger than its actual floor area.”
Especially in metropolitan areas, where residents often don’t have access to a lot of private outdoor areas, these spaces have also become an opportunity to connect with the outside world.
“Access to outdoor space improves wellness. It improves our connection to nature as a whole, and it just improves resident experience,” Manchisi said.
How this shifts priorities for developers
When balconies stop being a commodity and start being a demand for many, developers now have to adapt to this new priority.
As explained by Manchisi, while balconies can in fact make condos feel more liveable, developers need to make sure they are designed in a functional way.
“Not every balcony is valuable, if that makes sense. If they’re too small, people tend to just use them as storage areas,” he said.
“They should prioritize an appropriate size, something that’s like 1.5 metres by three metres seems to be kind of the sweet spot. You can get a table and three chairs out there… You can have some fun with your outdoor experience.”
Moving forward, the construction expert expects the trend to continue, as more developers respond to buyers and renters’ needs by requiring balconies.
“I don’t think [balconies] are a commodity. I think they’re a required feature of a living space,” he added.
