He tells Global News there was one fundamental shift in the market that led most investors to swing to a loss: the Bank of Canada’s rapid rise in interest rates, which has seen borrowing costs soar for many mortgage holders.nearly one in three investors are considering sellingWhile 2022 marked a tough year for Toronto’s investors, Hildebrand expects 2023 has been even worse so far.
Rental investors account for nearly three of every five condo units built in Toronto from 2016 to 2020, up 20 percentage points from a decade earlier,. For Vancouver, the rental investors account for almost half of all condo builds with a similar increase over the timeframes. Most investors buy pre-construction rather than from the resale market, according to Urbanation, meaning if an investor sells, that property is likely going to enter the ownership market.
“Purpose-built for rental housing hasn’t necessarily caught up with the demand for rental housing across the country,” Yan says.Immigration a constant pressure on the rental market “That means you’ve got affluent people who’d like to get into the ownership market unable to do so and are put into the rental pool, which is lousy for the people competing with them,” Davidoff says. “But great for landlords.”