New information from Statistics Canada shows that close to 62 per cent of condos in the region are owned by investors.
When it comes to condos built since 2016, that number rises to 77 per cent.
Megan Bell, the president of the Waterloo Region Association of Realtors and a realtor with Royal LePage Wolle Realty, explained what draws investors to condos.
"We found that investors typically gravitate a little bit more towards those type of properties just because it's less onus and maintenance on them to the outside areas," she said.
Bell added that investors are often needed before a new building can be built. Often, a certain number of units need to be sold before construction can begin.
Individuals who want to get into the condo market should still be able to despite the high number of investors.
"If a buyer is looking to try to get into the condo market, there are quite a few units that we see," Bell said. "It's not that developers would favour an investor over a first-time home buyer."
Bell believes that investors and rental units in the region are important for a healthy and balanced market, and there are always people that are looking to rent.
"Whether it's the lifestyle because they just like locking the door and going away and not having to worry about property taxes or maintenance or anything like that," said Bell. "They might be new to the city and trying out and figuring out if they want to stay here."
At the same time, the Canadian Real Estate Association said home sales across the country were down 37 per cent this January, compared to January 2022.
Bell said it is typical for January to be a slower month, and that the last few years of uncertainty have contributed to the slowdown.
However, she does believe the market will pick up.
"What we're starting to see is a lot of buyers coming out now. So I think that's going to pick up," Bell said. "I think we are going to see an active spring."
