The Toronto income property market remained strong in 2023 despite external pressures on monthly affordability.
Many real estate experts analyze property sales to try and interpolate where our market may be heading. There isn’t specific data available on the sales of income properties, so we look at MLS sales in different areas of Toronto with three or more kitchens. This excludes duplexes and houses with basement apartments, but it does give us a starting point to compare it to the single-family market.
Here are some statistics on last year’s sales of properties with three kitchens or more.
Central: (C01, C02)
31 total sales, average sale price was $2.2M
Midtown: (C03, C04)
22 sales, average sale price was just over $2M.
East (E01, E02, E03)
13 sales, average sale price was $2.3M
West (W01, W02)
35 sales, average sale price was just under $2M.
As you can see there isn’t a huge disparity in average prices across the city. The market for these properties remained strong throughout the year even though interest rates rose significantly over the course of the year, negatively affecting the cost to carry each month. Cap rates have been rising but monthly break-even numbers are much higher given the increased costs of borrowing.