Vast majority of Toronto-area new condo investors losing money every month: report

A caller study says Canada’s largest condo marketplace is facing its biggest trial successful decades arsenic nan number of investors losing money each month, and nan magnitude they’re losing, has ballooned.

The study by CIBC and Urbanation says rising costs person near 82 per cent of caller condo investors pinch a owe arsenic rate travel antagonistic successful nan first half of nan year, up from 52 per cent successful 2022.

The study showed that investors who closed connected a condo successful 2023 had antagonistic monthly rate travel of $597, up from $223 per period successful 2022, while successful 2021 and 2020, investors were still connected mean making monthly profits.

The study says higher liking costs, on completions connected higher-priced condos, drove up ownership costs by 21 per cent past year, acold up of nan 8 per cent emergence successful rents.

Authors Benjamin Tal and Shawn Hildebrant opportunity nan financial image is dramatically slowing income and condo completions, which will create a stagnation successful lodging banal successful nan coming years.

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They opportunity nan pressures mean nan Canadian lodging market, and nan Greater Toronto market successful particular, are facing nan astir important trial since nan 1991 recession.