Analysis of Condominiums in Toronto

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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.

Demographics Analyses

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