Investing in real estate is hardly a novel concept, and few markets in Canada are more closely scrutinized than Toronto. That doesn’t mean that investment opportunities in the Big Smoke are all tapped out though - there are still plenty of possibilities, and both buyers and current homeowners can see big returns if they stay on top of these trends.

 

Toronto’s Real Estate Market in 2023/2024

Toronto has one of Canada’s most active real estate markets, but even its popularity could not shield it entirely from the slight downturn seen in 2023. A variety of economic and political factors mean that the volume of sales, as well as length of time on the market, were both dampened compared to the past few years. Average prices, though, are still in general increasing - though more slowly than they did during the pandemic boom. 

Source: Precondo 2021

As of end of 2023, in the GTA:

• The average composite property price increased by 0.1% year-over-year, to $1,081,300

• Single-family homes increased by 1.3%, to an average of $1,291,000

• Townhouse/multiplex prices increased by 0.5%, to an average of $803,000

• Condo prices decreased by 0.7%, to an average of $695,300

• The average rent for an apartment in Toronto decreased by 2.4%, to an average of  $2,913 monthly

 

Toronto Market Trends

The mixed nature of the current real estate market in Toronto means that the type of property in question significantly impacts outlook. Overall, experts indicate that the GTA is currently a buyer’s market, but this is more true of condos than it is of single-family homes. This is in part driven by the types of buyers currently active in Toronto. Multi-property owners make up the largest segment of the market, followed closely by upsizing buyers looking for detached homes. The latter are driving the growth in secondary GTA markets (such as Burlington, Hamilton and Brampton), but new Torontonians are more than making up for this by continuing to move to the area in record numbers.

 

Source: StatCan 2020

 

So what does all this mean for those hoping to invest in Toronto real estate? Or those who own in Toronto but are thinking about selling? A closer look at the dynamics of specific segments of the market reveals some important nuance, including:

• Luxury homes and premium areas have seen a surge in both listings and average sale prices; in Rosedale-Moore Park, for example, the average sold price increased by 46% in the past year

• The City of Toronto itself has seen a greater-than-average decline - though this is notable more in sales volume than it is in price

• Suburban parts of the GTA, such as the hubs within both York and Durham regions, have seen greater-than-average price falls, as upsizing buyers who have traditionally focussed on these areas are now moving slightly further afield - thanks in part to new remote work norms

 

Best Toronto Neighbourhoods for Investment

The nuanced nature of Toronto’s current market means that there are more opportunities for savvy investors than you might expect - though choosing property type and location is much more important now than it has been in the recent past. Here’s our rundown of the best options, depending on your budget and needs:

 

Best Areas for Condo Investors

• Yonge and Sheppard

• Leslieville East

• Birch Cliff

• Downsview

• Yorkville

• Liberty Village

 

Best Areas for Investors on a Budget

• Mimico

• East Downtown

• Leaside

• Flemingdon Park

• Scarborough City Centre

• Crescent Town

• Thorncliffe Park

 

Best Areas for Affordable Detached Homes

• Bloor-Ossington

• Leaside

• Swansea

• St Andrews

• Rexdale-Kipling

• West Humber-Claireville

 

Best Areas for Multi-Unit Properties

• Bloor St West Corridor 

• Roncesvalles

• Clarington

• Oshawa

• Brock

 

Best Areas for Luxury Investment

• Rosedale-Moore Park

• Forest Hill

• Bridle Path

 

To learn more about the best luxury neighbourhoods in Toronto, read our in-depth blog post on the topic, here.

 

Some Important Up-and-Coming Areas

Lastly, let’s take a quick look at some of the areas within the GTA that are seeing a general increase in popularity, across property type and price point:

• Gerrard St. East benefits from proximity to the newly gentrified Leslieville and has many affordable detached and semi-detached homes

• East Danforth has seen a lot of new development thanks to the subway line; current inventory is hotly contested, but multiple new developments are expected to finish within the next few years

• Birch Cliff will be another long-term beneficiary of gentrification, with several projects in the area currently in pre-construction

• Scarborough Village is an artsy area that is quickly becoming trendy, and there are redevelopment projects underway that are expected to boost local demand

• Bloordale Village is seeing an overflow from Ossington start to affect its desirability, and a major new development will add residential units while also beautifying existing structures

• St. Clair West is benefitting from luxury development all around it, which cannot but affect its reputation and cache

 

If you’re a first-time property investor and looking for more tips on investing in the GTA, read our post specifically geared for novices, available here. And if you’re searching for a quick return on your investment, here’s some info on how to find discounted properties.

Source: StatCan 2020

 

Advice for Current Homeowners

All of this may be leaving current Toronto homeowners wondering what to do; is it worth listing your property now, or waiting? Well, that depends heavily on the type of property you own, and its location. If your home falls into one of the areas mentioned above, you may be in a position to make a good return - if you time it right. For in-depth advice catered to your specific situation, connect with a real estate expert to discover what’s possible for you. And for general tips on how to add value to your home, wherever you are, take a look at our article on exactly this subject.