Multifamily withstands pandemic better than most property types

The multifamily real estate sector has remained relatively stable thanks to low vacancy rates, and low interest rates that encourage investment, along with the steady capital and asset appreciation that these properties offer to investors.

Multifamily Market Factors

Strong market fundamentals make multifamily real estate in Ontario a smart investment opportunity. During the pandemic, rent collections remained around 97 percent, providing a steady income.

New Construction also does not fall under rent control; therefore, landlords are able to adjust the rent if necessary.

Emerging Multifamily Trends

In densely populated urban areas such as Toronto, land is at a premium,…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) reached the second-highest level on record for the month of October. However, new listings were down by one third compared to October 2020. The average sales price year-over-year saw the biggest increase in condos which were up 33.1 percent from last October, with an average sales price of $889,294.

GTA Realtors reported 9,783 sales through TREBB in October 2021, which is down 6.9 percent compared to October 2020.

Read more about the Toronto October 2021 Market Report here:

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Ottawa Market Report

OREB Members sold 1,677 residential properties in October through the Board’s MLS system, compared with 2,132 in October 2020. There was a decrease of 21 percent in the number of properties sold year-over-year.

The residential-property class was up 19 percent from last October, with an average price of $716,378. The average sale price for a condominium-class property in October was up 10 percent from last October with an average price of $404,760.

Lack of supply continues to put pressure on prices with inventory remaining at a one-month supply for residential properties.

OREB members assisted clients with renting 4,012 properties since the beginning of the year compared to 2,829 at this time last year.

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Multi-Family Investing: Triplex’s

A triplex consists of three individual dwelling units combined into one building, the individual units will typically share one or two common walls. Each unit of a triplex is self-sufficient, meaning each dwelling space has its own respective kitchen, bathroom(s), living room, a separate door to the outside, and its own address or unit number.

Some triplexes are constructed as a triplex, and others might have originally been built as a large, single-family home that was later divided into three separate dwellings.

A triplex is sold as one building, and the owner usually rents out all the units or lives in one unit and rents the other two. In some cases, a triplex owner can live in one unit and have family members…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were down 4.4 percent, from September 2020, while the average sold price was up 6.6 percent at $1,090,196. The average sales price year-over-year saw the biggest increase in detached homes which were up 19.6 percent from last September with an average sales price of $1,778,928.

Generally, we see an uptick in sales, average selling price and listing price when moving from the slower summer market to the busier fall market, and September 2021 was no different.

There were 9,046 sales reported through TREBB’s MLS system in September 2021. Compared to last year, market conditions tightened, with sales representing a substantially higher share of listings, and a significantly…

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Ottawa Market Report

Home Sales in Ottawa were down 31.4 percent for September 2021 from September 2020. OREB members sold 1,607 properties in September, compared with 2,314 in September 2020.

The average sale price was up from this time last year 14.4 percent at $629,476. The biggest increase in average sale price year-over-year occurred within the bungalow class which were up 23 percent at 693,024. Condos were up 13.8 percent with an average sale price of $425,362.

OREB President, Debra Wright stated that this decrease in September was normal due to the holiday weekend and school starting up again. The principal cause for concern remains inventory, as there is just over one month’s supply in housing stock at this time.

OREB Members…

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