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Ipsos Investor Polling Results and Rental

Market Overview

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Likelihood To Purchase an Investment Property

1B. How likely are you to purchase a home as an investment property over the next year?Base: All respondents. Fall 2020 (n=3213); 416 (n=1455); 905 (n=1758). Fall 2019 (n=4333). Fall 2018 (n=4060).

25%23% 24%

8%7%

8%

Fall 2018 Fall 2019 Fall 2020

Very/somewhat Likely(T2B)

Very likely(T1B)

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Impact of Vacant Home Tax on Decision to Buy Investment Property

1B. How likely are you to purchase a home as an investment property over the next year?Base: All respondents. Fall 2020 (n=3213); 416 (n=1455); 905 (n=1758). Fall 2019 (n=4333). Fall 2018 (n=4060).

40%

21%

37%

2%

Fall 2017 Fall 2018 Fall 2019 Fall 2020

Won’t impact plans

No longer buy

Have tenants rent

Other

↓ 7 pts

↑ 6 pts

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45%

33%

20%

Impact of Regulations on Short-Term Rentals on Decision to Buy Investment Property

4B. Earlier in the survey you mentioned that you own an investment property. The City of Toronto has implemented stringer regulations on short-term rentals and is currently studying the possibility of a vacant home tax. Starting from September 2020, short-term rentals (defined as all or part of a dwelling unit rented out for less than 28 consecutive days in exchange for payment, including B&Bs but excluding hotels and hotels) must be registered with the city. Among other things, the property listed must be the owner’s primary place of residence and they must also collect a 4% municipal accommodation tax. Not yet a reality, the vacant home tax means that homes that are not occupied for a certain period of time will be levied a tax. The Federal Government has already announced it will consider a nationwide vacancy tax. How do each of these measures impact your decision regarding your investment property?

Base: Plan to Buy an Investment Property In Toronto. Fall 2020 (n=277); 416 (n=219); 905(n=58).

Won’t impact plans

No longer purchase

Have tenants rent

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Likelihood of Listing Investment Property For Sale

A3A. How likely are you to list an investment property you own for sale over the next year?Base: Own an Investment Property. Fall 2019 (n=651): 416 (n=366); 905 (n=285)

61%66% 67%

22%

30%29%

Fall 2018 Fall 2019 Fall 2020

Very/somewhat likely(T2B)

Very likely(T1B)

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COVID-19 Pandemic and Listing Investment Property

QA3AX. Has COVID-19 made you more or less likely than you otherwise would have been to list an investment property you own?Base: Those who have an investment property (n=895; 416 n=508; 905 n=387).

More likely

37%

No impact

51%

Less likely

13%

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Fall 2019

Fall 2018

It won’t impact me at all 36% 35%

I’ll sell my investment property 34% 31%

I’ll have tenants to rent from me 28% 32%

Other 2% 2%

Potential Impact of Vacant Home Tax

A10. Earlier in the survey you mentioned that you own an investment property. The City of Toronto has implemented stringer regulations on short-term rentals and is currently studying the possibility of a vacant home tax. Starting from September 2020, short-term rentals (defined as all or part of a dwelling unit rented out for less than 28 consecutive days in exchange for payment, including B&Bs but excluding hotels and hotels) must be registered with the city. Among other things, the property listed must be the owner’s primary place of residence and they must also collect a 4% municipal accommodation tax. Not yet a reality, the vacant home tax means that homes that are not occupied for a certain period of time will be levied a tax. The Federal Government has already announced it will consider a nationwide vacancy tax. How do each of these measures impact your decision regarding your investment property? Base: Own an investment property. Fall 2020 (n=665). Fall 2019 (n=651). Fall 2018 (n=571).

30%

40%

28%

2%

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32%

26%

40%

Impact of Regulations on Short-Term Rentals on Decision about Investment Property

A10. Earlier in the survey you mentioned that you own an investment property. The City of Toronto has implemented stringer regulations on short-term rentals and is currently studying the possibility of a vacant home tax. Starting from September 2020, short-term rentals (defined as all or part of a dwelling unit rented out for less than 28 consecutive days in exchange for payment, including B&Bs but excluding hotels and hotels) must be registered with the city. Among other things, the property listed must be the owner’s primary place of residence and they must also collect a 4% municipal accommodation tax. Not yet a reality, the vacant home tax means that homes that are not occupied for a certain period of time will be levied a tax. The Federal Government has already announced it will consider a nationwide vacancy tax. How do each of these measures impact your decision regarding your investment property?Base: Own an investment property. Fall 2020 (n=665); 416 (n=384); 905 (n=281).

Won’t impact plans

Sell propertyHave tenants rent

38

Condo Rental Transactions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1 Q2 Q3 Q4Source: TRREB

Condo Rental Transactions by Quarter - 2019 vs. 2020

2019 2020

39

Average Condo Rents Dipped in 2020

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

2015 2016 2017 2018 2019 2020Source: TRREB

Average One-Bdrm & Two-Bdrm Condo Apt. Rents

One-Bedroom Two-Bedroom

40

CMHC Vacancy Rates Climbed in 2020

1.5%

0.8%

3.4%

1.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Purpose-Built Rental Condo Rental

Source: CMHC

CMHC Purpose-Built and Condominium Apartment Vacancy

2019 2020

41

In Conclusion: Home Sales Have a Huge Economic Benefit

Professional Services (incl. REALTORS®):

33,600Renovations: 19,550

Furniture & Appliances: 8,575

General Household Purchases: 4,125

Moving Costs: 2,425

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Econ

omic

Impa

ct

Source: Altus Group

Economic Impact of Each GTA Home Sale