The Toronto housing market has been a topic of interest for many investors and homebuyers in recent years. As we enter 2024, there are several key factors to consider when looking at the market's outlook for the year ahead.
A Summary of Toronto's Housing Market
In December 2023, the benchmark single-family home in Toronto saw a year-over-year increase of 0.6% to reach $1,273,300. Meanwhile, townhouses and multiplexes experienced a 1.3% increase to $797,600. On the other hand, the benchmark condo price decreased by 1.3% to $683,200. Overall, the benchmark composite home price saw a slight decrease of 0.4% to $1,067,200. Additionally, the average rent for an apartment increased by 2.1% to $2,832 for December 2023 [^1^].
Expert Insights on Toronto's Housing Market
According to local experts from the Toronto Regional Real Estate Board (TRREB), the high borrowing costs and unrealistic mortgage qualification standards resulted in an unaffordable housing market for many households in 2023. However, there is hope for a rebound in home sales in 2024 as borrowing costs are expected to trend lower, accompanied by a resilient economy [^2^]. TRREB Chief Market Analyst Jason Mercer suggests that buyers who were active in the market in 2023 benefited from more choice and lower selling prices, which could lead to renewed price growth if borrowing costs continue to decrease. TRREB CEO John DiMichele emphasizes the importance of increasing the number of homes available for rent or purchase to accommodate the record immigration expected in the coming years [^3^].
Demographics Shaping Toronto's Real Estate Market
While foreign investors have historically driven demand in Toronto's residential property market, recent legislation may be shifting the demographic landscape. The passing of the omnibus Bill C-32, including the foreign buyers' ban and anti-flipping tax, could lead to a decrease in foreign investment. However, it is important to note that foreign investors make up less than 5% of the city's total homeownership [^4^]. Additionally, investors and multi-property owners accounted for over 25% of Ontario's homebuyers in 2021, particularly in Toronto [^5^]. Upsizing buyers looking for single-detached homes have also driven demand in Toronto, as have new immigrants and out-of-province migrants advancing their careers [^6^].
The Rental Market in Toronto
The rental market in Toronto has also seen significant changes. In December 2023, the average asking rent for all residential properties reached a historic high of $2,178, representing an 8.6% increase from the previous year [^7^]. Purpose-built rental apartments experienced a remarkable annual growth rate of 12.8%, while condominium and home rentals saw comparatively slower growth rates at 6.9% and 5.9%, respectively [^8^].
What to Expect in 2024
Looking ahead, several factors are expected to influence the rental market in 2024. The demand for rentals is predicted to remain strong but slightly less intense due to a slowdown in the economy, a decrease in non-permanent residents, and an increase in homebuying activity as interest rates decrease. Furthermore, the increased supply of rental properties and tenant turnover is expected to moderate the growth of rents [^9^]. Affordable markets like Alberta are anticipated to continue experiencing higher rent increases compared to the national average, while higher-priced markets like British Columbia and Ontario may see rent hikes lower than the average [^10^].
In conclusion, the Toronto housing market is set to remain strong in 2024, with a rebound expected in home sales. Additionally, the rental market will continue to experience growth, albeit at a slightly slower pace. With the changing demographics and ongoing market developments, it's crucial for homebuyers and investors to stay informed with the latest trends and consult with experts to make informed decisions. Whether you're looking to buy or rent a property in Toronto, make sure to seek the guidance of a licensed mortgage expert who can provide personalized advice tailored to your specific needs and help you navigate the process with ease.
Caption: The Toronto housing market offers promising prospects for homebuyers, renters, and investors in 2024.
[^1^]: Original Article - Toronto Housing Market Outlook 2024. [^2^]: Original Article - Toronto Housing Market Outlook 2024. [^3^]: Original Article - Toronto Housing Market Outlook 2024. [^4^]: Original Article - Toronto Housing Market Outlook 2024. [^5^]: Original Article - Toronto Housing Market Outlook 2024. [^6^]: Original Article - Toronto Housing Market Outlook 2024. [^7^]: Original Article - Rents Across Canada Continued to Surge in December 2023. [^8^]: Original Article - Rents Across Canada Continued to Surge in December 2023. [^9^]: Original Article - Rents Across Canada Continued to Surge in December 2023. [^10^]: Original Article - Rents Across Canada Continued to Surge in December 2023.
