Ontario’s Housing Market in 2024: Buyers, Sellers, and Financial Shifts

This analysis follows the recent release of the latest edition of Teranet’s Market Insight Report, which delivers a comprehensive examination of Ontario’s real estate market through data analytics derived from sales and mortgage registration activity in the Ontario Land Registry.

Key Takeaways

• Condos dominate Toronto’s market, comprising over 65% of property transactions in 2024.

• Single-party investors make up 20% of multi-property deals.

• First-time homebuyers in Ontario have a median age of 40.

• Toronto’s non-condo properties are held for an average of nearly 18 years.

• 25% of homes bought in 2022 for under $1M were sold at a loss by 2024.

Ontario’s housing market has experienced significant fluctuations over the past five years, driven by pandemic-era peaks and subsequent corrections. The 2024 Teranet Market Insight Report sheds light on evolving trends, including a surge in condo completions, challenges for buyers who purchased at market highs, and the growing influence of individual investors.

Toronto’s Condo Market: A Tale of Two Trends

In 2024, condos accounted for over 65% of Toronto’s property transactions. However, the resale condo market saw its lowest activity in ten years, while new condo completions surged. Approximately 15,000 new condo units were completed in 2024, a 78% increase from the previous year. This influx of new units likely contributed to the subdued resale market, as the report notes, “The significant rise in new condo availability in 2024 provides critical context for understanding the condo market’s dynamics.”

The split between transfers of condo and non-condo properties has been fairly stable over the past 10 years, but 2024 saw a peak of over 27% for condo transactions

Multi-Property Owners: A Shifting Landscape

Multi-property owners (MPOs) remain a dominant force in Ontario’s housing market, though their behavior is evolving. As of December 2024, 55% of MPOs own two properties, and 20% hold three, indicating that most are not aggressively expanding portfolios but rather holding properties for passive investment or personal use. Large-scale investors (those with 11 or more properties) have declined, dropping from 13% in April 2022 to 7% by the end of 2024. New MPOs, or those acquiring their second property, represent 70% of MPO transactions over the past decade.

Distribution of Multi-Property Owners by Portfolio Size, 2024

Toronto continues to attract MPOs, with a 38% increase in existing MPO transactions and a 22% rise in new MPO purchases in 2024. In contrast, regions like York, Wentworth, and Waterloo saw reduced MPO activity.

Rise of Single-Party Investors

Single-party multi-property owners have emerged as a significant buyer group, accounting for 20% of MPO transactions. Notably, nearly one-third of these investors purchased properties without mortgages, relying entirely on cash. Millennials lead this group (39%), followed closely by Gen-Xers (36%). These buyers are active in Toronto, York, and Peel, showing no strong preference for condos versus non-condo properties.

Regional Financial Stress

Power of sale transactions, a marker of financial distress, have increased since 2022 but remain below 2015–2016 levels. In 2024, Toronto accounted for 13% of power of sale transfers, Peel 9%, and Simcoe 6%. However, some regions showed disproportionate distress: Peel, with 7% of total transfers, made up 9% of power of sales, and Middlesex, with 3% of transfers, accounted for 6% of power of sales. Halton and Waterloo, by contrast, reported lower distress sale activity.

Power of Sale Transfers by Region 2024

Losses for Pandemic-Era Buyers

Homeowners who purchased properties in 2022 and sold in 2024 often faced financial losses. About 25% of homes bought for under $1M in 2022 were sold at a loss by 2024. The median loss across Ontario was approximately $45,000, rising to $56,000 in the Greater Toronto Area (GTA). In Muskoka, median losses reached $240,000, though transaction volumes were limited.

Properties Sold at a Loss (2022 Purchases, 2024 Sales) and Median Losses by Region (Source: Teranet Market Insight Report)

1/4 of properties purchased in 2022 and sold in 2024 worth under $1 million suffered a loss

First-Time Buyers: Older and Facing Higher Costs

The median age of Ontario’s first-time homebuyers has risen to 40. In Toronto, the cost of a non-condo home for first-time buyers jumped from $500,000 a decade ago to $1. clan3M in 2024, making condos a more accessible option for many entering the market.

Homeowners Holding Longer

Toronto homeowners are retaining properties longer, particularly non-condo homes, with an average holding period of nearly 18 years, up from 14 years in 2015. The report suggests this trend reflects affordability challenges, as “many Toronto residents opt to renovate rather than relocate to meet changing housing needs.”

Looking Forward

The 2024 data highlights a growing divide in Ontario’s housing market. Cash-rich investors continue to shape the market, while first-time buyers and those who purchased at peak prices face significant challenges. Affordability remains a pressing issue, particularly in Toronto, where rising costs and longer holding periods signal a market increasingly out of reach for many.

For more details, explore Teranet’s full Market Insight Report.