Canada’s real estate boom discussed back in February 2022 was heavily investor-driven, especially in the context of new construction. Betterdwelling.com sifted through ownership data and discovered that most condos built since 2016 are investors owned. Those owners could be landlords who want: (i) a second home  (ii) an income source or (iii) just a place to seed equity. Regardless of the motivation, the “most affordable” housing option is, by an overwhelming majority, investor-owned.

As reported earlier by the Residential Construction Council of Ontario (RESCON) and Global News rising Canadian interest rates as well as some other trends in the construction industry may be changing the trajectory of Toronto’s condominium market.

In its Condominium Market Survey for the second quarter of 2022, Urbanation reported that 6,792 new condo units were sold in the second quarter. This is a decline of 19% from Q1, and just under twenty-five percent year-over-year. The global news article entitled, Here’s how high-interest rates are impacting Canada’s condo demand noted the experts forecast the sale of only 10,000 more units launched between now and January 1, 2023, with 10,000 units being delayed or scraped.