Colliers 2022 Year in Review - GTA Multi-Family Market Report

Canadian Multi-Family Apartment Building

Colliers 2022 Year in Review - GTA Multi-Family Market Report

Transaction activity in the multifamily market slowed substantially in the latter half of 2022 as a result of the Bank of Canada’s interest rate hikes. Despite the decreased activity, the underlying fundamentals of the sector remain strong.

  • Total sales volume decreased by 33% from the year prior to $2.3 billion. The top 8 purchasers made up 68% of the market share.
  • Transaction volume decreased 44% in the GTA to a total of 76 market transactions in 2022.
  • The average price per unit rose to $355,187 in 2022, which represented an increase of 10.6% from the year prior.
  • Average cap rate compressed 13 bps to 3.03%.
  • Rental vacancy in Q4 2022 was down to 1.7% from 4.4% the year prior and annual rent growth for purpose-built apartments averaged 6.5% in the GTA during the past year.
  • Purpose-built rental construction starts in the GTA declined 54% in 2022, after reaching a multi-decade high of 7,557 starts in 2021.

View the report and any added information here.

Lindsay, Kyle. Itamunoala, Dayma. Bruchkowsky, Matthew. (2023, Feb 14). GTA Multifamily Report 2022 Year In Review. Colliers. https://www.collierscanada.com...