Tenanted Condos: Only One in Five Sold in 2024

So the downtown Toronto condo market has changed a lot from three or four years ago. Here are a few things that I've recently learned. I'll share with you. Number one, turns out that in 2024 only 21% of condos that had tenants that were on the market successfully sold. So basically, if you were trying to sell a condo and you had tenants in the condo, well, the likelihood of you selling was only one in five.

And those are pretty bad odds. So there's a lot of resistance to buying tenant to units. Why is that? Well, because investors aren't buying condos right now. Just doesn't make sense. They don't cash flow out. There are too many risks with tenants. Market rates are still too high. And so that is a real problem for the condo market.

The other thing is that in Toronto right now, 70% of units that are on the market are investor units. So they're investors who are trying to get out of the condo. Probably because the mortgage rates are too high or they're not getting the rent that they expected that they would be able to get.

So what is selling in Toronto condos is end-user units? The buyers that are out there, we know from the stats I just shared with you, are people who are going to live in the unit. They're not buying it as an investment. And so that change is what is in demand. It used to be that what was in demand was one-plus-den units.

That's what investors were buying, where the den could also be used as a bedroom. Now, what are selling are better square footage suites in good buildings in great neighborhoods because the buyer is going to live there. So quite a marked change from how the condo market was three or four years ago.

Lots of opportunities if you want to get into a condo in Toronto. So any message I can help you too.