The Weekly 411:

Today we're covering

🏙️ Greater Toronto Rental Market Q1 Update 

🚗 Honda's $15B investment in Ontario

👪 1 in 6 Millennials Own Homes with Parents

🔥 Canada's Recreational Market is Hot!

✈️ Indians Immigrating to Canada Skyrocketed by 326% 

😖 Delinquent Mortgages Rise 71% in Toronto in One Year

Read Time: 3 minutes

🏙️ GTA Rental Market Q1 Update 

• Condo lease transactions surged 19.7% year-over-year (YoY) 

• The number of condo rental listings grew even faster, increasing by 51% YoY.

• Rent dropped from $4.20 per square foot (Q3 2023) to $3.89 per square foot (Q1 2024).

• Over 23,000 new condos were registered in the past year (21% increase).

• Rental rates are falling as more condos enter the market. This offers more options for renters and stabilizes average rental rates. 

🚗 Honda's $15B investment in Alliston, Ont

• Honda to build 4 electric vehicle (EV) plants in Ontario, including 2 in Alliston, Ontario.

• This will create more than 1,000 manufacturing jobs once fully operational in 2028.

• For every plant assembly position, eight additional jobs are created in the community. These jobs include work in local restaurants, shops, retail outlets, and supply companies.

Why It Matters: This growth makes Alliston and the surrounding areas attractive to residential investors. Since the plant opens in 2028, targeting the influx of workers can look at projects with completion dates aligning with that timeframe. 

👪 1 in 6 Millennials Own Homes with Parents

• A new study reports that 1 in 6 homes owned by '90s-born adults in Canada are co-owned with their parents.

• In about 30% of co-owned homes, the adult child lives on the property while the parents live elsewhere

• 90s-born adults whose parents are multiple homeowners are nearly three times more likely to own property, with 53% owning multiple properties.

Why it Matters: Increased reliance on parental support highlights the widening affordability gap, making it even harder for those without family wealth to enter the market. Co-ownership may tie up housing stock that would otherwise be available for independent buyers.

🔥 Canada's Recreational Market is Hot!

• Canadian recreational home prices are forecasted to grow 5% by the end of 2024.

• 64% of cottage owners are holding onto their properties.

• The impact of interest rates varies depending on the region:

• Mont-Tremblant, Quebec: Less impact due to a strong luxury market with cash buyers

• Whistler, B.C.: The high-end market is not affected by interest rates, but the overall market is waiting for potential rate cuts.

• Ontario is expected to see the highest price jump at 8%.

✈️ Indians Immigrating to Canada Skyrocketed by 326% 

• Indian enrollment at Canadian universities boomed by 126,747 students between 2000 and 2021 (a 5,800% increase).

• From 2016 to 2019, while US international student enrollment dipped by 6%, Canada's skyrocketed by 52%.

• Over 1.2 million Indians are currently backlogged in the US, waiting for employment-based green cards

😖 Delinquent Mortgages Rise 71% in Toronto in One Year

• The share of delinquent mortgages nearly doubled in a year, reaching the highest rate since 2016.

• The delinquency rate increased by one basis point (bp) to 0.12% in Q4 2023, representing a 71.4% surge over one year.

Why It Matters: Rapid increases in delinquencies are typical of markets with weakening demand, often affecting investors first.

🖼 Image of The Week

They say a picture is worth a thousand words... So, every week, we share one image that describes how we feel about the news that week