According to a new survey, multi-property owners account for the biggest share of real estate acquisitions in Ontario when compared to other demographics.
Multi-property owners acquired more properties in 2021 than first-time buyers and buyers moving across the province, according to Teranet, Ontario’s sole provider of online property searches and registrations.
Multi-property owners accounted for almost 25% of all real estate transactions from January to August of this year. First-time homebuyers accounted for around 22% of the total, while movers accounted for only 16%. Just over 18 percent of people gained property as a result of a life event such as death, marriage, or divorce.
Interestingly, until 2016, which the research notes was the year the mortgage stress test was first adopted, first-time homebuyers continuously accounted for the greatest share of sales. Multi-property owners have dominated transactions since then.
Historical data from the last ten years demonstrates how distinct dynamics in different sub-markets play out. From 2011 to 2021, Toronto, which accounted for 17% of all Ontario property sales, had an overall tie between multi-property owners and first-time buyers, with each accounting for a quarter of all sales.
Waterloo, on the other hand, has continually been favoured by first-time buyers, despite an increase in multi-property owners as many parents began buying houses for their post-secondary student children. This, according to Teranet, is due to the increased concentration of high-tech firms and job possibilities in the region.
When it comes to who owns these many Ontario properties, Gen Xers make up the majority, accounting for slightly over 32% of all multi-property owners in Ontario between January 2020 and August 2021. Millennials made up 22% of the population, Baby Boomers made up almost 17%, and mixed households made up 26%.