March 2025 Greater Toronto Area Multi Residential Market Update

As of March 24, 2025, the Greater Toronto Area (GTA) multi-residential property market has exhibited notable trends:​

Sales Activity and Investment Trends

In the third quarter of 2024, the GTA’s multi-residential market experienced a significant uptick in investment activity. A total of 3,261 units were traded, marking a 158% increase from the previous quarter and a 468% surge compared to the same period in 2023. This growth was largely attributed to declining bond rates, which attracted both buyers and sellers back into the market. ​

Market Outlook

The Toronto Regional Real Estate Board (TRREB) forecasts a moderate increase in home sales and average prices for 2025. Specifically, TRREB anticipates 76,000 home sales, representing a 12.4% rise over 2024 figures. This optimism is based on expectations of lower borrowing costs and improved affordability, encouraging more buyers to enter the market. ​

Government Initiatives

In an effort to stimulate construction and address housing affordability, Mississauga has introduced significant development charge reductions. The city is also advocating for the Region of Peel to implement a new multi-residential tax subclass, which could potentially reduce property taxes by up to 35% for new rental projects. ​

Challenges and Considerations

Despite these positive developments, the market faces challenges. In February 2025, home sales in the GTA declined by 28.5% compared to the previous month, influenced by economic uncertainties related to trade relations. Affordability concerns persist, with many potential buyers hesitant due to current mortgage rates and economic uncertainties. ​

Overall, while the GTA multi-residential property market shows signs of resilience and potential for growth, stakeholders should remain attentive to economic indicators and policy changes that may impact future performance.​