Toronto Multifamily Investment Forecast
Many Higher-Income Workers Choosing to Rent Amid Single-Family Housing Trends
Lack of budget-friendly homes aids outlook as preferences shift. Immigration and a broader economic reopening in the second half of last year helped lift the metro’s job count by 4.1 per cent relative to the year-end 2019 tally. As the second largest financial center and third largest tech hub in North America, higher-wage jobs are being created at a blistering pace in the GTA. Payroll additions in these industries, coupled with a shortage of single-family houses available for purchase, is resulting in home and condo prices skyrocketing in Toronto. The price of a detached single-family house exceeded $1.4 million last year, which is almost a 35 per cent annual increase. As such, many potential entry-level buyers are opting to rent. Meanwhile, COVID-19 restrictions and remote work operations generated stronger demand for units in suburban complexes with outdoor spaces, balconies and larger floorplans. This shift in preferences is producing vacancy contraction and strong rent growth in places like East Brampton, Oshawa and Milton-Halton Hills.