Analysis of Condominiums in Toronto
According to Canadian Housing Statistics Program, in 2018, the rate of owner-occupied condo apartments in Ontario, including Toronto city was 57.3% suggesting that most condo apartments were probably vacant, rented out, or used as a second property. Women are the majority owners of condos in Toronto city and own for 57.3% of all condos. Likewise, 13.9% of condo owners in Ontario are under 35.
Toronto Condominium Statistics
- Almost all new rental demand is being met through the secondary rental market (e.g. rented condos, secondary suites). The rent for condo units in Toronto expanded by 25% from 2006 to 2017.
- About one third (33.4%) of renter households in Toronto city reside in non-condo secondary rental housing, with the remainder (17.4%) residing in condo rental units. In 2016, there were a total of 91,731 secondary condo units and 258,469 secondary non-condo units.
- In Toronto, condos accounted for 77% of all housing completions from 1998 to 2018. Fast-forward to 2018, Toronto city had 18,397 condo starts and 11,816 condo completions, representing 80.8% and 73.4%, respectively of all housing starts and completions. The 18,397 condo starts in 2018 represents the second highest annual number of condo starts recorded.
- In 2018, total vacancy rates were as low as 1.1% and 0.7% in the primary and condo rental markets, respectively. Approximately, 70% of condos in Ontario are located in Toronto CMA and account for 20.7% of all the residential properties in Toronto CMA.
- The average condo ownership costs are eclipsing median household income growth; for instance, from 2006 to 2016, median owner household income reduced by 15% while average home ownership costs increased by 60% from 2006 to 2018. Likewise, in 2018, the average price of non-resident owned condo was $426,000, a whopping $36,000 more than the average value of a resident-owned unit.
- The 2018 rate of owner-occupied condo apartments in British Columbia was 58.7% and in Nova Scotia and Ontario, including Toronto city was 57.3%. In this regard, many condo apartments are suspected to be vacant, rented out, or used as a second property.
- In 2018, the Toronto census metropolitan areas (CMA), non-owner-occupied condo apartments had higher median assessment values, and 37.9% of condo apartments were not owner-occupied and had a median assessment value that is 4.7% higher than the $360,000 median assessment value of owner-occupied condos.
Home Ownership Characteristics
- In Toronto, the rental market is increasingly becoming more expensive pushing most middle-income households out of the ownership market.
- From 2006 to 2018, the median household income increased only by 30% whereas the average home ownership costs jumped by 131% reducing the number of middle-income households ownership.
- According to The Federation of Rental-Housing Providers of Ontario (FRPO), the leading source of recent renter household growth was seen among young adults (25 – 34) years and empty-nesters aged above 55. However, the majority of condo renters were under the age of 35.
- 52.4% of all the individual owners in Ontario are women. The percentage drops to 51.4% for detached homes and 57.3% for condos. In Toronto CMA, 56.5% of individual condo owners are women, an indicator they are a driving force in the condo segment.
- 13.9% of condo owners in Ontario are under 35; however, the percentage increases to 15.5% in Toronto CMA.
Home Price versus Household Income in Different Toronto Neighborhoods
- The price of a home and the income of households varies greatly across the Toronto city neighborhoods.
- In Greater Toronto, the average home price in 2019 was $802,400 versus a median household income of $78,373.
- In the Hamilton-Burlington market, the average home price in 2019 was $613,900 versus a median household income of $75,464.
- In the London & St. Thomas real estate market, the average home price in 2019 was $413,484 versus a median household income of $64,743.
Age Profile & Geographic Distribution of Toronto City Renters
- As of 2016, Toronto city's 25 to 34 age group represented the biggest percentage of renters in Ontario at 23%. Equally, an additional 7% of renter households were under 25, resulting in a combined 30% share of renters under the age of 35.
- The 35-44 and 45-54 age groups each represented an 18% share of renter households. The 55 and above age group represented 34% share of renter households, while those aged 65+ represented a 19% share of renter households.
- Based on geographical distribution, 60% share of units are located in the Greater Toronto Area, whereby 47% are in the City of Toronto and 13% in the surrounding 905 markets, including Hamilton.
- London represented the next biggest share at 13%, Ottawa had 11%, and Kitchener Waterloo 9%.
Storage Facilities in Toronto Condos
- According to research, many urban homeowners are transforming 400-square-foot suites into livable homes, often compromising storage space, which frustrates many tenants who end up seeking alternatives like storage rentals by Second Closet.
- In most condos, tenants will find a storage locker to store additional belongings or items; however, the storage lockers are small and are an easy target for thieves.
- In this regard, the majority of tenants are dealing with lack of adequate condo storage space and poor security in their storage units. Unfortunately, the report and other real estate reports did not feature any details regarding the number of storage facilities in Toronto condos.