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Teranet’s latest quarterly Market Insight Report: A Focus on Multi-Property Owners in Ontario Pt.II

In case you missed it, we released the latest edition of the quarterly Market Insight Report last month. Teranet’s Market Insight Reports deliver a comprehensive analysis of the Ontario housing market and new insights into the real estate market in Ontario derived through our data analytics team’s analysis of sales registration activity in the Ontario Land Registry.

In a previous edition of the Market Insight Report, we reported that, as of April 2022, just under 25% of all residential properties in Ontario are owned by multi-property owners. Out of those properties, over 53% are owned by those with only two properties in their portfolio. In addition, our analysis suggested that the majority of multi-property owners are purchasing for long-term holding and value, with only a small fraction demonstrating high rates of turnover and shorter holding periods in their property portfolios that is indicative of speculative activity.

In this edition of the report, we continued to focus on multi-property ownership profiles in Ontario to understand how they are purchasing, what they are purchasing, and how they are financing such purchases. We also included a special focus on corporations that are multi-property owners.

To get a sneak peek of the data included in our latest report, we’ve compiled a few highlights:

  • In analyzing Ontario property purchases made by multi-property owners since 2011, we observe that approximately 60% are purchased by parties of two, and 30% by those purchasing individually. The proportion of multi-property purchases made by a single owner is steadily decreasing, from 36% in 2011 to only 27% year-to-date in 2022.
  • As of July 31, 2022, 53% of properties owned by multi-property owners are by those who own two properties, 18% owned by those with three properties, 8% by those with four properties, and the remaining 21% by those who own five or more properties.
  • Amongst multi-property owners with two properties in their portfolio, it has historically been fairly even in terms of seeking financing from the same lender for both property purchases, compared to those that seek different lenders. As the property portfolio size grows, there is a greater tendency for multi-property owners to seek different lenders for the different properties, with over 70% of multi-property owners with five or more properties choosing different lenders for the properties within their portfolios.
  • As of July 31, 2022, multi-property owners that are corporations account for ownership of just under 4% of residential properties in Ontario. Of those, 95% are held in portfolios that reside in the same region. This is illustrative of the likely nature of property ownership for income-generating purposes, where the portfolio of properties is held in the same region for ease of maintenance.

If you need more information about the data presented in the report, the Teranet Data Science Lab can help you dig deeper. Our team will work closely with you to answer your questions with insights from our proprietary databases. For more information, please contact your dedicated Teranet account manager.

Download the report