Colliers Q2 2023 - GTA Multi-Family Market Report

Canadian Multi-Family Apartment Building

Colliers GTA Multi-Family Market Report

The multi-family market in the Greater Toronto Area (GTA) experienced positive developments in Q2 2023 with increased transaction volume and strong rental market growth. Although the market holds a promising long-term outlook, prices remain lower compared to this time last year.

  • Transaction volume increased by 10% compared to this time last year, reaching a peak of 22 transactions, indicating a slight resurgence in the market.
  • The average price per suite in the GTA during Q2 2023 was $325,589, closely aligning with the average price reported at the end of 2021, but representing a 9.6% decrease compared to the price per unit last year.
  • The Government of Ontario announced a 2.5% annual rent increase guideline for 2024 mirroring the rent increase guideline established for the current year.
  • Financing costs have seen a significant shift, with the Canada Mortgage Bond 5-year rate increasing from 2% in January 2022 to 4.18% currently, impacting cap rates significantly.
  • Private buyers have emerged as the dominant force in the multifamily market, while institutional purchasers have become more selective in their investment choices.

Read Colliers' Original Article and Report

Lindsay, Kyle. Itamunoala, Dayma. Bruchkowsky, Matthew. Prachter, Zoe. (2023, July 11). GTA Multifamily Market Report Q2 2023. Colliers.

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