Condo Fee Increases in 2023-Lessons From 2022

Condo fees are expected to increase in 2023 due to rising costs of materials, services, products, and staff. Data from 36 electronic budgets reviewed in 2022 for condominium communities in Toronto and the GTA indicates an average increase of 6.7 percent, matching the consumer rate of inflation. However, construction-related activities saw a much higher increase of 26.6 percent. Reserve fund allocations, representing 26.7 percent of condo budgets on average, increased by an average of 8.7 percent in 2022. Gas costs increased by 19.9 percent, while insurance premiums rose by 9.5 percent, contributing to the overall increase in condo fees. These trends are expected to continue in 2023, necessitating potential fee increases of 15 percent or more to maintain current levels of maintenance, staffing, and services.