Welcome to Elevate’s Toronto real estate market guide – just updated for Q3/Q4 2024!
Whether you’re a seasoned investor or just dipping your toes in, this comprehensive guide breaks down everything you need to know about real estate in Toronto.
We’ll explore the latest Toronto housing market trends, dig into Toronto rental data, and break down Toronto property prices. Let’s get started!
Toronto’s Population Shifts: Key Insights on Rental Trends
Toronto’s population, according to the 2021 Census, stands at roughly 2.8 million, with an average household size of 2.4 people. Nearly half of Toronto’s residents, about 47%, are renters.
Toronto Population
2,794,456
Housing Units
1,160,890
Household Size
2.4
Renters
47%
With affordability challenges, the City of Toronto is focusing more on rental affordability, which is a more realistic goal compared to closing the homeownership gap.
As Toronto rental demand continues to rise, we expect the percentage of renters to climb, aligning more with other major North American cities.
Toronto’s New Housing Policies: Addressing the “Missing Middle”
Toronto’s housing market varies significantly by neighbourhood. While downtown condos are thriving with high population density, lower-density areas are seeing slower growth. To balance this out, the City of Toronto is shifting its housing policies to increase density in low-rise neighbourhoods.
Key policy changes include:
- Toronto Secondary Suites (2000): Allows adding at least one unit per house.
- Toronto Laneway Suites (2018-2019): Build a home in your backyard if you have a laneway.
- Toronto Garden Suites (2022): If your backyard is big enough, you can add another house there even if you don’t have a laneway.
- Toronto Multiplexes (2023): Turn your home into up to four units.
- Toronto Rooming Houses (2024): Having rooming houses in each Toronto home are permitted.
- Toronto Major Streets Project (2024): Convert houses on major streets into up to 60 units.
- Toronto Retail In Neighbourhoods (2025): You may be allowed to add more retail and services into residential neighbourhoods starting 2025.
These initiatives are designed to provide more housing options and increase density, addressing the supply-demand imbalance Toronto has been grappling with for years.
Toronto Rents and Interest Rates
Rent yields, also known as cap rates, often move in tandem with interest rates. In 2023, Toronto saw a rent surge as interest rates spiked. Now, as interest rates stabilize and start to decline in 2024, Toronto rental prices are also easing slightly.
However, the Toronto housing supply can’t keep pace with the city’s rapid growth, so Toronto rents aren’t expected to drop significantly. The gap between available homes and the growing population in Toronto is the largest it’s been in over five decades.
Toronto Real Estate Price Trends
Despite a recent dip in prices, Toronto’s real estate market remains strong for long-term investors.
Over the past 20 years, Toronto home prices have grown by an average of 7.4% annually. This shows steady appreciation, making it an attractive real estate market for long-term holds.
Looking Ahead: Toronto Housing Market Outlook for 2025
Several factors will shape the Toronto housing market in 2025:
Population Growth vs. Housing Supply: Toronto’s population is growing, while new housing development is lagging behind, leading to an increasing demand for homes that continues to outstrip supply, forcing prices up.
Affordability Through Declining Interest Rates: As interest rates decrease, homebuying becomes more affordable, allowing buyers to have greater spending power or lower monthly payments.
Enhanced Housing Policies for Investors: Recent changes in housing policies are creating opportunities for investors to capitalize on rising property values, improved rent yields, and value-add renovation projects.
Favorable Buyer’s Market: With increased inventory and less competition, buyers can take their time to find the best deals, making it an ideal time to enter the market with reduced stress and fewer bidding wars.
Investing in Toronto Multiplexes: A Smart Strategy
At Elevate Realty, we know Toronto multiplex investments offer some of the strongest real estate investment returns in Canada.
Not only do they provide solid rental yields with monthly equity gain and positive cash flow, strong market appreciation, but with Toronto’s pro-density housing policies, there’s also potential to gain value-add appreciation by adding more units.
We’ve done the homework, and our Deal of the Week showcases one of the top multiplex investment opportunities in Toronto. Don’t miss out—see how this investment can bring in strong returns for you!
Don’t just take our word for it—check out our top real estate investment pick in Toronto and see for yourself how strong the returns can be!
How We Can Help
If you’re ready to explore the best opportunities in today’s Toronto real estate market, we’ve got your back.
We’re not your typical Toronto real estate sales brokerage. Instead, we focus on using numbers to make better real estate decisions in Toronto.
That can mean looking for stronger investments with positive cash flow, thinking about risk management, and looking for ways to boost returns like value-add renovations and gentrifying areas.
If you want to discuss your private real estate situation with us, just book a call with us by hitting the “Book A Free Call” button below!
