August 2015
Nobody seems to know how much of the condo market is controlled by investors.
Investment properties can introduce a heightened degree of conflict within a condo community.
While use of condominiums as rental housing may be beneficial to some, their use as rental stock or investments can conflict with the goal of home ownership.
Canada Mortgage and Housing Corp (CMHC) reports that 17.1% of Toronto condos are investor-owned.
Based on their survey of households, this suggests that most condominium buildings are below the 25% threshold where condo communities are sometimes viewed as less stable and more problematic.
The survey may understate the number of investor-owned condos. It excludes empty investor-owned condos and those rented via free websites. It also excludes investors who own a condo in Toronto but reside in another city. Finally, the survey does not reflect purchased condos in unopened buildings.
Investor-owned condos, according to others in the industry, is in excess of 40%. Some developers believe the true figure is 60% to 70%.
