Market & Money | Condo vs Multiplex Rental
Toronto's Condo Rentals Are Your Competition
Before you underwrite a multiplex as rental, look at the secondary market it sits beside. CMHC reports that about 40.3% of the Toronto CMA's condos — roughly 214,083 units — are rented out by individual investors. Those condos rent higher than purpose-built apartments but stay far tighter. A ground-oriented multiplex is a different product, and that is where it wins.
Key Takeaways
- ✓CMHC reports ~40.3% of CMA condos rented out — about 214,083 units.
- ✓Condo 2-bedroom rent ~$2,891 versus purpose-built ~$2,045 (CMHC).
- ✓Condo vacancy ~1.0%, far below the 3.0% purpose-built figure.
- ✓A ground-oriented multiplex is a different product — larger, no shared tower.
PlexCheck prices units from the CMHC Rental Market Survey, which measures existing purpose-built stock, so a new build usually rents above it. See the rent assumptions for your area and adjust them.
Condo Rental vs Multiplex Rental
| Metric | Rented condo | Purpose-built multiplex |
|---|---|---|
| Share of stock rented out | CMHC reports ~40.3% of CMA condos rented (~214,083 units) | Purpose-built rental supply; ground-oriented |
| Typical 2-bedroom rent | CMHC reports ~$2,891 | Purpose-built 2-bedroom ~$2,045 (CMHC, Oct 2025) |
| Vacancy | CMHC reports ~1.0% | Purpose-built 3.0% (CMHC, Oct 2025) |
| Form | Stacked apartment in a shared tower | Ground-oriented, often larger, no shared building |
| Investor exposure | Individually owned, sold and re-listed by many small landlords | Held as a single rental asset |
Condo segment figures and purpose-built averages from CMHC Rental Market Reports and the CMHC rent table (purpose-built values October 2025).
What It Means for a Builder
A vast secondary market
CMHC reports about 40.3% of the Toronto CMA's condos are rented out — roughly 214,083 units. That is a parallel rental market the size of a small city, run by thousands of individual investor-owners, sitting alongside purpose-built supply.
Condos rent higher but tighter
CMHC reports a rented condo 2-bedroom around $2,891 against roughly $2,045 for a purpose-built 2-bedroom — meaningfully higher — with condo vacancy near 1.0%, far below the 3.0% purpose-built figure. The condo segment is pricier and scarcer.
A multiplex is a different product
A ground-oriented multiplex unit is not a stacked condo. It is often larger, family-sized, with its own entrance and no shared elevator or amenity fees. That is the part of the market purpose-built towers and investor condos both under-supply.
Best For
- ✓ Ground-oriented, family-sized units that compete on a product the condo market does not offer.
- ✓ Builders who underwrite to comparable purpose-built rents rather than the rented-condo premium.
- ✓ Locations where renters want a house-like unit with its own entrance, not a stacked tower apartment.
Usually Fails When
- ✕ A pro forma borrows the rented-condo 2-bedroom premium for a unit that competes with purpose-built stock.
- ✕ The unit mix mirrors small investor condos in a market already deep in that product.
- ✕ Rent assumptions ignore that condo vacancy near 1.0% reflects a different, scarcer segment.
What To Verify Before Spending Money
- → Whether your units actually compete with rented condos or with purpose-built apartments.
- → The current CMHC condo-segment and purpose-built rent and vacancy figures.
- → How a ground-oriented form differentiates from the local condo supply.
Where to Go Next
Frequently Asked Questions
How much of Toronto's rental supply comes from condos?
Do rented condos cost more than purpose-built apartments?
If condos already supply so many rentals, why build a multiplex?
Which rents should I underwrite a multiplex to?
Does the condo segment make Toronto a risky rental market?
Official Sources Referenced
Related reading
Longer pieces on the same question.
Underwrite against survey rents, not listing prices
PlexCheck prices the units from the CMHC Rental Market Survey. Those are averages of existing purpose-built stock, so a new build usually rents above them and the model stays conservative on income.
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