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.

Read Colliers' Original Article and Report

Lindsay, Kyle. Itamunoala, Dayma. Bruchkowsky, Matthew. (2023, Feb 14). GTA Multifamily Report 2022 Year In Review. Colliers.

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