Re/Max recently held its annual Activate Conference in Toronto. The company notes that attendees gained valuable insights, built meaningful connections and discovered innovative strategies to elevate their business. It shares several key moments of the event:

Basketball tournament and live auction in support of Children’s Miracle Network

Five basketball teams participated in the tournament, raising $4,000 for the Children’s Miracle Network.

Also, over $110,000 was raised for the organization during the live auction and several other breakout sessions including prize drawings. Donations raised will benefit the 13 Children’s Hospitals across Canada. The event featured CMN patient ambassadors Ava and Cash.

Alyssa Rae Johnson Fund hits $1 million milestone

Bruce Johnson, agent with Re/Max By The Bay Brokerage, and his family were also recognized for reaching the $1 million mark in donations for the Alyssa Rae Johnson Fund, benefitting the SickKids Hospital.

The network raised $165,635 at the conference to help reach this goal. Johnson was also awarded the inaugural Lifetime Achievement Community Care Award for his outstanding fundraising efforts, including his renowned Motorcycle for Miracles campaign.

Canada’s economic outlook: CIBC economist Benjamin Tal

At the event, Tal revealed that the real estate sector is facing its toughest challenge since the 1991 recession due to aggressive interest rate hikes from the Bank of Canada, which have inadvertently increased inflation through higher mortgage payments.

He predicts that interest rates will drop by 50-75 basis points this year, reaching about 2.5 per cent by the end of 2025, supporting a market recovery.

Artificial intelligence decoded

Dr. R. David Edelman, founder and director of Project TENS at MIT and former White House tech advisor, discussed artificial intelligence and its impact on our work and the world. He emphasized that these technologies can “transform our interactions,” and help improve business practices.

Arlene Dickinson: Entrepreneur, on CBC’s Dragons’ Den

Dickinson shared her entrepreneurial journey to becoming a visionary leader and influential figure in Canadian business. Despite facing numerous challenges in life, her vision, dedication and perseverance have been her guiding forces. She highlighted the importance of taking risks on yourself, regardless of fear or the opinions of others.

The stalemate continues between buyers and sellers in Toronto’s real estate market this month. It’s easy to get excited because sales are up from last year — but let’s remember that last year was an exceptionally bad year. In the broader view, the fall market has been relatively weak in the long-term context against the typical month of September.

Key September points

The Toronto Regional Real Estate Board (TRREB) posted its monthly Market Watch report, and here are the key points you need to know from the summary: 

1. Sales are up 8.5 per cent from last year.
2. New listings are up 10.5 per cent, slightly outpacing sales. 
3. Properties taking 35-45 per cent longer to sell compared to last September.
4. Because of slowed sales cycle, active listings are up 35.5 per cent! Supply accumulation is becoming substantial.
5. House prices are still grinding down — nominally, 1.0 per cent below last year, with real house prices down 3.0 per cent when adjusted for inflation.

Source: TRREB

Recovery or rebalancing? 

TRREB argues the uptick in sales we’re seeing is the result of favourable market conditions, such as interest rate cuts and revised mortgage lending guidelines. These factors are certainly important to recovery, but a deeper look suggests that the GTA market might be more balanced than on a path to full recovery.

It’s worth seeing a long-term “sideways” market, rather than an “upwards” one. The key factor here is the rate of growth in supply, which has outpaced demand, challenging the notion of a straightforward recovery. Until that changes meaningfully from buyers entering the market more quickly than sellers, it’s tough to imagine a complete recovery has begun.

Sales increase due to new opportunities for buyers, but price still most important factor

The 8.5 per cent year-over-year increase in home sales (4,996 in September 2024, up from 4,606 in September 2023) is presented as evidence of recovery. TRREB President Jennifer Pearce attributes this increase to buyers capitalizing on lower borrowing costs and adjustments to mortgage lending guidelines.

These changes include:

1. rate cuts from the Bank of Canada 
2. reduced five-year fixed mortgages from a falling Canadian five-year bond yield
3. the coming introduction of longer amortization periods
4. the ability to insure mortgages for homes valued up to $1.5 million 

These factors certainly make the market more affordable for some buyers who are limited by capital costs and the lending environment. However, with the B20 stress test still in place and buyers qualifying at rates over 5.0 per cent, price ultimately becomes the most important factor for many buyers looking to re-enter the market.

Easing of stress test could build staying power

To this end, TRREB highlights that the easing of the mortgage stress tests for existing homeowners on renewal could build some staying power into the market, by making homeowners and investors able to afford to keep their homes rather than selling when faced with financial stress.

TRREB also expects further rate cuts to allow a growing number of households to afford homeownership. This notion is especially pointed at first-time buyers, who have been outlined by the Bank of Canada as nearly 50 per cent of all homebuyers, representing a key demographic for those hoping for a recovery in the market. 

Supply outpacing demand

A closer analysis reveals a more nuanced picture. While demand (measured in sales) grew, the rate of new listings entering the market has grown even faster, by 10.5 year-over-year, slightly outpacing sales growth. In September, 18,089 new listings were added to the MLS, contributing to an already better-supplied market. This gap between supply and demand, rather than indicating a shortage of homes, points to an easing of market pressures and a better market for buyers to enter. 

Compounding this, we’re seeing a significantly increased “time to sell” — meaning it takes an extra week for a listing to sell, compared to the average 20 days on market from September last year. This slowing absorption has led supply to accumulate, with active listings now up 35.5 per cent compared to September 2023.

Ability to negotiate on price: Indicates a market no longer heavily favoured to sellers

Should this trend continue to hold, it’s reasonable to expect that buyers will resume their home search as they see more homes on the market and hope they can capitalize on the supply, shop around and negotiate with sellers. This is how the imbalance between supply and demand is further materialized, in a decline in prices.

The MLS Home Price Index Composite benchmark was down by 4.6 per cent year-over-year, and the average selling price in September dropped 1.0 per cent compared to the previous year.

TRREB attributes this to increased negotiating power for buyers, especially in the more affordable segments like condominiums and townhouses, which are favoured by first-time buyers. More activity in the lower ends of the market can skew the average down. Interestingly, 416 condominium sales are actually up year-over-year, despite the market being in a severe state of excess supply. The ability to negotiate on price is a clear indicator of a market that’s no longer tilted heavily in favour of sellers.

Source: TRREB

The pricing context: A “recovery” in question

A true market recovery, by definition, would generally see home prices stabilizing or even increasing as demand starts to outpace supply. However, this is not currently the case in the GTA.

While average selling prices have edged up slightly on a seasonally adjusted basis compared to August 2024, the year-over-year decline in benchmark prices suggests that the market has not fully recovered to its previous highs. Affordability challenges that plagued the market before the interest rate hikes are being alleviated, but they haven’t disappeared.

Furthermore, while rate cuts may improve affordability in the short term, they don’t necessarily address the long-term structural issues in the housing market, such as supply constraints or high construction costs. It’s worth noting that while lower borrowing costs can temporarily boost demand, they can also encourage speculative buying, which could further distort the market, particularly if supply doesn’t keep pace.

Recovering sales, but not prices

Despite TRREB’s optimistic messaging, the GTA housing market appears to be in a state of balance rather than recovery. Yes, sales are up, and rate cuts have eased some of the financial pressure on buyers and sellers. On the other hand, the growing supply of homes, coupled with modest price declines, suggests a more buyer-friendly market, one in which supply is catching up to — and in some cases, surpassing — demand.

This dynamic is providing more negotiating power to buyers, and while that’s a positive development for affordability, it doesn’t necessarily signal a robust recovery in price. Instead, the current market is best characterized as one where buyers have regained some control, but where underlying challenges around housing supply and affordability remain.

The return to a balanced market does point to a steady resurrection of sales activity, which is welcome news for the real estate profession that has been dealing with drastically reduced activity for some time now.  

Billions of dollars spent on renovations and infill development during the pandemic have boosted the overall value of residential housing and supported higher prices for single-family homes in Toronto and Vancouver, despite broader market pressures, according to the 2024 Re/Max Canada Changing Landscapes Report.

National spending on home renovations up 8% to nearly $300 billion — Toronto and Vancouver lead the way

The report highlights how ongoing revitalization efforts in these cities have significantly impacted housing supply and affordability, especially in urban cores. From 2019 to 2023, national spending on home renovations — including additions, upgrades and equipment — reached nearly $300 billion, an 8.0 per cent increase from the previous five years. Toronto and Vancouver were at the forefront of this trend.

Contrastingly, throughout the same time, residential building permits for single-family homes in the Toronto and Vancouver Census Metropolitan Areas (CMAs) totaled just over $27 billion — a near-24 per cent decline from the previous five years and a trend that’s expected to continue.

However, the value of permits for multi-family housing rose by 60 per cent from 2014-2018.

“With all available tracts of land in the city committed to high-density construction, the single-detached home is quickly becoming a unicorn,” says Re/Max Canada president Christopher Alexander.

“Existing homeowners who can’t find what they want in the market will buy an older home in an area of their choice and renovate or build their vision. We expect this trend will strengthen in the years to come and serve to drive price growth in single-detached housing even further. There are a variety of variables at play, but renovation and revitalization is having significant implications for housing supply and affordability.”

Revitalization & gentrification

Revitalization is still one of the most underestimated elements impacting rising housing values.

Renovation and infill development have transformed neighborhoods, particularly in areas where land values have far outpaced the value of existing homes. Older bungalows and two-storey homes are being replaced by custom-built houses, changing the face of working-class areas into desirable hotspots.

The report also highlights gentrification, particularly in Vancouver, where single-detached homes are growing larger, while condominium units are shrinking. Despite the overall decline in single-family home numbers, new construction has led to bigger houses in the Vancouver CMA, with the average home size reaching 3,600 square feet — the largest among major Canadian cities.

In Toronto, the number of vacant land properties dropped significantly (by 6,680) between 2019 and 2021, reducing opportunities for new single-family developments. As much as 30 per cent of the Greater Toronto Area (GTA)’s housing stock was built before 1960, making renovation a key strategy for updating older homes.

Stable prices: Those who can make their moves now vs later may be better off

Renovation activity, combined with rising affluence and intergenerational wealth transfers, continues to impact the housing market. The average price of a detached home in the GTA has increased by almost 35 per cent between 2019 and 2023, rising from $1.05 million to $1.42 million. In Vancouver, detached home prices have climbed nearly 38 per cent over the same period, from $1.42 million to $1.96 million.

However, Alexander points out that prices are currently stable compared to 2023: “Those in a position to make their moves now may be better positioned than those in 2025, as prices currently remain close to year-ago levels in the Toronto CMA and modestly higher in the Vancouver CMA.”

As Canada’s major cities continue to evolve, Re/Max expects that renovation and infill development will play an even larger role in shaping the housing market in the years to come. 

“The detached housing supply in urban centres is in the midst of a monumental metamorphosis that will unquestionably impact housing inventory and composition for further generations of real estate consumers,” notes Alexander.

Review the full report here.

In today’s pricey Toronto real estate market, buying a home can feel like an impossible dream. So for those who love city life but want to build equity, “rentvesting” is a strategy worth considering.

Rentvesting involves purchasing a more affordable property in another city and renting it out for income while continuing to live as a tenant in a preferred city like Toronto. Over time, the rental income and property appreciation help build equity, which can be used for a down payment on a home in Toronto down the road.

Zoocasa looked into the top cities most Torontonians could afford to buy and where investments could likely turn a profit.

Best cities for Torontonians to rentvest in a condominium

To determine the best cities for Torontonians to rentvest, the study analyzed the maximum mortgage amount affordable ($275,402) on an average Toronto income ($62,050), then compared condominium prices and rents across Canada.

Torontonians could make profitable investments in several cities, including Edmonton ($163,452) and Regina ($183,630), where average condominium prices fall well within this range. 

The study notes that Etobicoke is home to the highest average annual income of the six GTA cities analyzed and, as a result, those residents can afford the largest mortgage amount ($307,137). On average, they’re a few hundred dollars short of affording a condominium in Brantford Region and Windsor-Essex, or potentially in Oshawa (which has an average price of $420,575 and a total mortgage amount of $336,460). 

Profitable Investments. In cities like Edmonton, investors can earn substantial monthly profits. With average rents at $1,553 and mortgage payments at $886, the potential for monthly gains is $667. Calgary is another great option, with potential gains of $474 per month due to the difference between rent ($1,954) and mortgage payments ($1,480).

Regina, Saskatoon, Winnipeg, Ottawa and Halifax-Dartmouth also offer opportunities for positive monthly cash flow, making them attractive for rentvesting.

Is rentvesting right for your clients?

Before diving into rentvesting, it’s crucial your clients understand what comes with it:

Higher down payments and stricter criteria. Investment property mortgages typically require at least a 20 per cent down payment and have more stringent credit score and debt-to-income ratio requirements compared to traditional mortgages.

Tax implications and benefits. While the First Home Savings Account (FHSA) cannot be used to purchase investment properties, there are potential tax benefits. Investors can often deduct mortgage interest, property taxes, insurance and maintenance costs from their rental income.

Management responsibilities. Owning a rental property comes with the responsibility of managing tenants, complying with local regulations and handling unexpected repairs. It’s important to factor in these duties when considering rentvesting.

For those willing to think creatively and take a strategic approach, rentvesting offers a pathway to achieving homeownership dreams in Toronto while building a solid financial foundation through real estate investments.

In Toronto’s competitive real estate market, having a parking space with a condominium can significantly increase the property’s value — sometimes by as much as six figures. A recent analysis by Wahi sheds light on just how much this coveted amenity can cost, depending on location in the city.

The study looked at the median price differences between one-bedroom condominiums with and without parking across Toronto’s six former pre-amalgamation cities: East York, Etobicoke, North York, Scarborough, Toronto and York.

And the findings were clear — units with parking not only sold faster but also demanded significantly higher prices (this varied by location, but as much as $100,000 or more).

“It isn’t a secret that parking in Toronto isn’t cheap,” says Wahi CEO Benjy Katchen. “However, Wahi’s latest analysis gives condominium buyers a better idea of just how much more they may have to spend — or how much they can save — depending on whether or not they need parking,” Katchen continues.

Transactions for units with parking sold for over $122k more and took over 2 weeks longer than those without

The study focused on condominium sales from the first half of this year, comparing the median sale prices and days-on-market for one-bedroom units with and without parking.

Results showed that condominiums without parking generally took longer to sell, particularly in areas outside Toronto’s core, where public transit and cycling infrastructure are less robust. Units with parking in more central areas like East York and Old Toronto sold an average of three days faster than units without parking.

Scarborough had the most pronounced difference in selling times. One-bedroom condominiums with parking sold in an average of 25 days, while those without parking took 41 days. This suggests that in parts of the city where cars are more necessary, demand for parking is stronger.

When it comes to price, East York showed the largest disparity. The median price of a one-bedroom condominium with parking was $532,000, compared to $410,000 for a similar unit without parking — a difference of $122,000.

Toronto neighbourhoods with the priciest parking

Affluent, centrally-located neighbourhoods like Yorkville, known for its high property values, unsurprisingly topped the list of where parking adds the most to a unit’s price. In these areas, condominiums with parking sold for at least $98,000 more than those without.

The analysis highlights the substantial impact that a parking space can have on condominium prices in Toronto, especially in high-demand areas. Whether you’re helping buyers or sellers, understanding these dynamics can help you navigate the city’s real estate market more effectively.

The term “missing middle” has become as common in today’s real estate vocabulary as “a hot market” or “location, location, location.” Cliches often have some truth in them — and in the case of the “missing middle,” it’s gaining traction in the Canadian real estate market in part due to the rise of a newer property type: multiplexes.

Changes in B.C. and Toronto

Multiplexes are residential homes that consist of multiple separate units within what would have traditionally been a lot designated for a single detached home. They can generally vary from two to eight units.

In 2023, British Columbia made amendments to their Housing Statutes (Residential Development) Amendment Act — more commonly referred to as “Bill 44.” That same year, Toronto’s city council adopted its own Official Plan Amendment and Zoning Bylaw Amendment to allow multiplexes throughout the city.  

Jasmine Cracknell-Young, vice president of market advisory at Zonda, saw that the rise of multiplex listings in Toronto jumped dramatically since these amendments. According to the Toronto Regional Real Estate Board (TRREB), in 2023 there were 115 listings and in 2024, 168 listings — a 46.1 per cent increase.

“I think because housing has become such a hot topic, we have all levels of government finally talking about it because they realize the crisis that we’re in,” she comments. 

A ‘tiny part of the market’: Legislation may not go far enough

Chris Spoke, builder and developer with Toronto Standard, has seen firsthand the impact of these legal changes on housing projects. Personally, he doesn’t believe the legislation goes far enough. 

“So we have five residential zones in Toronto. Two of those residential zones do support multi-unit housing, but the zoning bylaws paired with the city’s Official Plan and the language of it is if there’s any new development within the neighborhood’s designation, it has to respect and reinforce the existing physical character.

(This) means that even if the zoning technically allows for multi-unit housing, if it’s not consistent with the existing physical character, then you’re not going to get past this test,” Spoke explains. “We’ve still not seen a lot of activity because I think the multiplex bylaw doesn’t go far enough in terms of the permissions. So it’s still like a tiny part of the market.”

Optimism and opposition: Major Streets Study

However, Spoke is optimistic that multiplexes will continue to rise in popularity in Toronto, particularly with the momentum surrounding the Major Streets Study which “focuses on permitting gentle density — missing middle housing — on major streets in low-rise neighbourhoods across Toronto.”

“These are the major arterials in the city that have bus routes on them,” adds Spoke. “So this also opened up a new scale of development in parts of the city where it was not legal before.”

However, these policies are met with some opposition. When it comes to the Major Streets Policy, traffic is a big concern among current residents.

“It’s always traffic,” shares Cracknell-Young. “They just think it’s taking up road space.”

Bill 44 in B.C. addresses these concerns by eliminating new vehicles from entering neighbourhoods altogether in some cases: if a housing project is within 400 metres of a transit stop, no minimum parking is required. Transportation accessibility is poised to play a significant role in the development of multiplex housing.

Ottawa: Multiplex increases expected post-bylaw approval in 2025

Nachiket Kulkarni, an architectural designer with Architrix Studio, has worked on multiplex projects both in Vancouver and Ottawa, where he now lives.

“Ottawa would be two or three years behind Vancouver when it comes to that change,” he says. “So whatever happens in Vancouver right now, the same change would be in Ottawa two or three years down the line in terms of multiplexes.”

While Kulkarni has seen a big shift towards more multiplex development over the past couple of years in Ottawa, he anticipates that to increase even further after December 2025, when the new zoning bylaw is expected to have final approval.

“In Ottawa, they’ve consolidated the number of zones into just six zones now, just like Vancouver did,” adds Kulkarni.

In October 2023, the City of Vancouver implemented a new zoning designation, “R1-1,” otherwise known as “Residential Inclusive.” This was put in place to replace and simplify the previous zoning structure, which included various RS (One-Family Dwelling), RT (Two-Family Dwelling) and RM (Multiple Dwelling) designations.

And similar to Toronto and Vancouver, Ottawa’s changes will also aim to reduce parking requirements.

‘Citizen developers’ on the rise

Spoke believes that with these new changes, multiplexes will open the door towards something he refers to as “citizen developers:” where those such as home builders, general contractors and even everyday homeowners can actively participate in building up new housing opportunities.

“Multiplexes offer a form of development that’s accessible to people who haven’t worked professionally as developers,” Spoke says.

While multiplexes will likely not solve all of our housing problems overnight, they provide an opportunity to think of density in a more nuanced manner. 

“I think it’s a really great product form. You can have multiplexes go into existing communities and have people of different incomes and demographics able to access some of the best communities that we have,” says Cracknell-Young. “To stop the sprawl and have more people in our existing communities where it’s possible … I hope that we will see more of them.”

Image: ShapeYourCity.ca

The Greater Toronto Area (GTA) housing market saw a noticeable drop in bidding competition this July, marking the fourth consecutive month of decline, according to Wahi.

Only 14 per cent of GTA neighbourhoods experienced overbidding, down from 27 per cent in June, as homebuyers took advantage of nearly 10,000 more active listings compared to last year.

“The spring selling season that never was has been followed by a slower-than-usual summer,” says Wahi CEO Benjy Katchen. That said, Katchen notes that homebuyers have a lot of choice, which is “helping more buyers negotiate better deals and purchase homes below-asking.”

Sales and price drops, longer days-on-market

Despite a 12 per cent year-over-year drop in sales with 4,991 homes sold in the GTA, the median price of a home fell slightly by 2.0 per cent, settling at $960,000.

Homes also stayed on the market longer, with the average number of days increasing to 24, up from 17 last July.

Overbidding and underbidding in the GTA

The GTA’s share of overbid neighbourhoods was down year-over-year. In July 2023, more than a third (38 per cent) were in overbidding territory. Now, this share has dropped to the lowest level since January, which saw zero per cent of neighbourhoods overbid. 

For only single-family homes specifically, 23 per cent of neighbourhoods were overbid, compared to 6.0 per cent for condominiums.

As for underbidding, for the 14th consecutive month, Oakville’s Eastlake was in the top five and is the only carryover from June’s top five.

Hamilton: ‘Showing more signs of life than some Ontario cities’

In contrast, Hamilton’s housing market is experiencing a resurgence in competition. Wahi reveals that 18 per cent of Hamilton neighbourhoods were in overbidding territory, a significant jump from 7.0 per cent in the first quarter.

Central Hamilton neighbourhoods, in particular, had the strongest bidding activity, with the majority of overbidding neighbourhoods and four of the top five located there.

The city saw 2,221 homes sold at a median price of $780,000.

“Hamilton is showing more signs of life than some Ontario cities,” notes Katchen. “It will be interesting to see whether the Bank of Canada’s July rate cut encourages more bidding competition in the third quarter.”

The Toronto Regional Real Estate Board (TRREB) and its member realtors are supporting high school students pursuing post-secondary education with the TRREB Past President’s Scholarship.

Since the program’s 2007 inception, 73 students have received a total of $264,500 to put toward their futures.

‘TRREB member realtors are helping to open doors … empowering students to pursue their dreams’

To qualify, each student must write a compelling essay dealing with key issues in the real estate industry, and the winners can win one of two $5,000 first-place, $2,500 second-place, $2,000 third-place and $1,500 fourth-place prizes.

“TRREB member realtors are helping to open doors beyond real estate. We’re empowering students to pursue their dreams with our Past President’s Scholarship. The longevity of this initiative is a testament to how the real estate industry truly cares about giving back and making a difference,” says TRREB president, Jennifer Pearce.

Award-winning essays and their proposed industry solutions

First place

The first-place winners are Tejiri Inikori and Dev Katyal. Inikori’s essay addresses the challenges of housing affordability in the Greater Golden Horseshoe and the flexibility renting offers individuals and families. Inikori is heading to Queen’s University for its kinesiology program.

Katyal’s essay proposes three solutions to tackle the housing affordability crisis: revisiting zoning, more purpose-built rentals and providing support for vulnerable households. This fall, Katyal will study computer science at the University of Waterloo.

Second place

In second place are Daniel Tan and Jaden da Silva. Tan’s essay explores what’s needed to accommodate our growing population. Tan is attending the University of Western Ontario for computer science and Ivey Business School in the fall.

da Silva’s essay compares housing in Tokyo and Austria and how these regions address building more homes and affordability. da Silva will attend the University of Toronto and major in neuroscience and economics.

Third place

The third-place winners are Elisa Gabriele and Ethan Berger. Gabriele’s essay uncovers if the rental market is keeping up with the growing demand for housing. Gabriele will attend the University of Waterloo this fall for architectural engineering.

Berger’s essay discusses government and its efforts to get more shovels in the ground. Berger will attend the University of Guelph to study animal science.

Fourth place

Yulia Senyuk took the fourth-place award. Senyuk’s essay highlights the rising cost of renting and the impact this is having on consumer debt. Senyuk enrolled in the Schulich School of Business at York University.

Learn more about TRREB’s Past President’s Scholarship, including when to apply for the 2025 program.

In the Greater Toronto Area’s (GTA) housing market, July 2024 tells a story of resurgence and adjustment. A previously stagnant market is now starting to revive, with home sales increasing by 3.3 per cent, reaching 5,391 transactions compared to last July’s 5,220.

This renewed activity is highlighted by an 18.5 per cent rise in new listings from the previous year, providing prospective buyers with more options. However, the revival also reveals contrasting elements — as supply grows and choices expand, the average selling price sees a slight decline, reflecting the complex dynamics between supply, demand and market pressures.

Across these shifts, the condominium sector presents its own scenario, with rental demand rising but being outpaced by an influx of new listings, resulting in more choices and slightly lower rents for tenants.

Significantly more listings helped boost supply and drop prices

July 2024’s GTA home sales rebounded from a previous stagnation and suggest a gradually recovering market. This increase in sales was matched by a significant rise in new listings with 16,293 in July, representing an 18.5 per cent increase compared to the same time last year. 

Clearly, there is an improved market supply, which helps to keep up with demand as prospective buyers have a much larger array of choices available. 

Source: TRREB

Despite the rise in both sales and new listings last month, the GTA’s average selling price declined by 5.0 per cent year-over-year. Reported at $1,106,617, it marked a 0.9 per cent (over $10,000) decrease from the $1,116,950 recorded in July 2023. The reduction in prices can be attributed to the increased inventory which has helped decrease demand pressure on the housing market.

Source: TRREB

Condominium sales and rentals

With this in mind, the GTA’s condominium market had mixed results. Condominium rentals experienced a substantial increase in Q2 2024 with 17,400 rentals compared to 13,896 rentals in Q2 2023. This was a 25.2 per cent increase, but the number of new condominium rental listings rose even more significantly, up by 51.3 per cent year-over-year. 

Source: TRREB

Despite the higher demand for rental accommodations, tenants have benefited from increased choice and slightly lower average rents. On average, a one-bedroom condominium apartment in Q2 2024 rented for $2,452, reflecting a 3.1 per cent decline from the $2,529 average rent in Q2 2023. Similarly, the average rent for a two-bedroom condominium was down by 1.9 per cent to $3,178 from $3,239 in the previous year.

Although there was a substantial increase in condominium rentals, condominium sales dropped to 5,474 in Q2 2024 from 6,824 in Q2 2023, a 19.8 per cent decrease. In contrast, the number of new listings surged by 36.5 per cent year-over-year, reaching 16,917. The average selling price of condominium apartments in Q2 2024 was $729,005 a slight drop from $737,925 at the same time in 2023.

Source: TRREB

Toronto reported a 0.5 per cent decrease in its average selling price of $765,963, while Durham has one of the GTA’s lowest condominium sales and lowest average prices in Q2 2024.

As we look at the GTA’s housing market for mid-2024, the combination of rising transactions and falling prices reflects a market in transition. A 3.3 per cent increase in home sales alongside a 5.0 per cent decrease in average prices highlights the balance between growing supply and moderated demand.

In the condominium sector, we’re seeing a similar trend — a significant rise in rentals contrasting with declining sales and a notable increase in new listings. This evolving market presents both opportunities and challenges, indicating that while recovery is underway, the future will be complex and multifaceted. Our 2024 housing market is more than just numbers; it illustrates the dynamic interaction of economic forces, buyer sentiment, and strategic adjustments.

It’s no surprise Toronto’s housing market is reaching critical levels as the rising cost of living, high rental rates, a shortage of construction workers and the city’s growing population are exacerbating the imbalance between supply and demand.

Toronto is experiencing a surge in condominium listings, but few highlight that the suites are primarily small and not fit for family living. According to the Toronto Regional Real Estate Board (TRREB)’s June 2024 market watch data, listings for units in the 500- to 599-square-foot range soared by 50 per cent compared to last year.

Are Torontonians being heard?

Unfortunately, family-sized condominiums make up only about 10 per cent of the market, despite a growing and pressing demand from families. This shortage of larger, multi-bedroom suites designed for families and multigenerational living leaves many buyers, particularly those seeking homes that accommodate extended families, underserved and frustrated. This begs the question: when it comes to housing supply, are Torontonians being heard?

In April, we conducted a survey with members of the Angus Reid forum to capture what Torontonians are feeling about Toronto condominiums, and the results were illuminating. Almost half of respondents (47 per cent) see the potential for condominiums to be their long-term homes, and this statement is echoed strongly by current condominium dwellers, with 71 per cent expressing confidence in condominium living.

However, despite the increase in positive outlook, a staggering 93 per cent of respondents believe that Toronto needs better-built condominiums that suit people’s lifestyle needs, and nearly four in five respondents think that most Toronto condominium units are poorly constructed, indicating dissatisfaction with the current landscape.

Market caters to a misguided notion of “investor” instead of “end-user” condominiums

For condominium developers like us, this disconnect between what’s available in the market and what Torontonians need and want is strikingly clear. For far too long the market has catered to a misguided notion of what “investor”-focused condominiums are, rather than “end-user” condominiums.

This belief has been that investor buyers are predominantly interested in smaller units.

We believe all condominiums should be end-user-focused, and by meeting the demands of end-users, they become a good investment as well. This notion of catering to investors has led the market with an overwhelming supply of small units that many do not deem as viable homes.

Understanding and responding to Torontonians’ housing needs

A home should inspire pride and satisfaction. It should not be a compromise driven by convenience. Torontonians need not settle for underwhelming condominium developments with small suite layouts and poor build quality. Developers need to listen and create homes that meet the real needs and aspirations of the people, rather than simply adding more shoebox units to Toronto’s already imbalanced housing stock.

All of this just scratches the surface of the issue. Beyond size alone, developers bear the responsibility to construct sustainable, high-quality homes that meet people’s expectations. Much of today’s condominium stock lacks the thoughtful architecture, quality and design necessary to make condominiums both a comfortable and enjoyable home for everyone.

We’ve all heard the same story from our friends who live in condominiums: “I can hear my neighbours,” “The wait time for the elevators is far too long,” and so on. It’s really no wonder that more than 34 per cent of Torontonians believe that owning a condominium is like owning a box in the sky, but it doesn’t have to be that way.

Liveability above all: Condominium developers need to keep quality at the core

The growing dissatisfaction among condominium owners suggests that we need to make a drastic change in what we’re building and how we’re building it.

Developers must shift their focus to quality and liveability. This means designing homes that people are proud to own and live in, with the space, comfort and amenities that support a high quality of life, creating sustainable, vertical urban environments for people of all ages and life stages. We need to build condominiums that make people want to live in Toronto and enjoy everything that our beautiful city has to offer.

Bridging the gap is a developer’s responsibility

Toronto’s housing crisis requires an approach that addresses both the quantity and quality of homes and developers have a crucial responsibility in this. The solution isn’t just about building more units; it’s about building the right kinds of homes.

Only by closing this gap between what’s available and what’s needed can we hope to resolve the crisis and create a city where everyone feels at home.