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Market Report

Toronto Multifamily Market Report

1Q 2023

Strong Demand Diminishes Availability; 
Outlook Unabated by Increase in Construction

Vacancy realigns with pre-pandemic levels. Demand for apartments soared in 2022 due to a rise in immigration, a continued return to office, and redirected housing needs from the single-family market amid high homeownership costs. The GTA’s multifamily vacancy rate, as a result, dropped significantly in 2022 to a level more consistent with its pre-pandemic trend. The Pickering and Ajax submarket approached near-full occupancy, with the vacancy rate reaching 0.5 per cent. Parts of Etobicoke and North York also recorded ultra-low availability of 0.9 per cent. Being the top destination for new immigrants entering Canada, the metro will see another surge in new settlers this year as the federal government is on track to admit a record number of permanent residents. Local employment, however, will likely soften due to a slowing economy caused by elevated interest rates — especially toward the latter part of 2023. The rise in immigration will therefore provide the backbone for the metro’s apartment demand.

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