Toronto Rental Market Still Going Strong
New condo constructions in Toronto are everywhere. As a matter of fact, its quite hard these days to walk down a street without seeing a construction site. With that many condo projects you would think the rental market is saturated. However, the vacancy rate was just 1.8% in 2015 and has held under 2% since 2010, making Toronto’s rental market still extremely hot.
According to the Toronto Real Estate Board, home prices in Toronto have gained an impressive 16.2% to an average of $739,082 compare to last year around this time. This prices out a lot of first time home buyers since they don’t have the down payment. Their only option is to rent.
Immigration is also another reason fueling Toronto’s low vacancy rate. According to Stats Canada, 240,000 immigrants entered Canada last year and 267,000 the year before with Toronto and Vancouver being the top favorite destinations.
As long as the trend continues with rising home prices and continuous immigration, Toronto’s rental market will remain supply constrained for quite some time.
