…Global real estate consulting giant RLB published the Q3 2022 update to its Crane Index…[and the] high-rise construction in Toronto still leads North America by a wide margin. No other city on the continent even comes close.
Source: RLB; Better Dwelling
Other cities seen as frothy, with a large building boom, don’t even compare. Los Angeles, for instance, at 46 cranes in Q3 2022 is the second most active high rise market. That’s 80% less activity than Toronto saw in the same quarter. At the same time, LA home prices are expected to plummet by 20%. That’s likely to kill short-term demand for future high rise projects.
Following LA are Seattle (42), Denver (32), and Washington, DC (26). All of these cities are noted for their construction boom — it’s just next level in Toronto.
Most of Toronto’s cranes are being used for high-rise construction projects. RLB counted 130 residential cranes in the city, meaning more than half is residential. Soft pre-sale demand might slow that in the near term.
Construction cranes for residential housing in Q3 2022 in select North American cities.
In contrast, the next most residential cranes were located in Seattle (36), Denver (23), and Chicago (14). Once again, what’s happening in Toronto isn’t even close to anywhere else. The scale is reminiscent of the 2006 boom in Dubai. Hopefully things work out a little better.