Builders are listening to frustrated buyers who are losing out on multiple bids and are now converting some of their condominium projects into purpose-built projects to satisfy rental demand and also investor demand in such opportunities. Click on link for more….
In Toronto, we see many first-time buyers, in a fit of despair from losing so many bids, deciding to take a “time out” from these fruitless bouts and diverting their attention to renting instead. We are also seeing some seniors selling their long term family homes and sitting out of the market for a while by renting, with an eye toward getting back in the market when prices finally start to come down.
Rentals in Toronto have increased by 20% in 4th quarter 2015 compared to rentals in the same period a year earlier. Rental rates have increased modestly for 1 and 2 bedroom apartments; however, rates for THREE bedroom condos have risen by more than 10%! Why? Because the people looking for 3 beds/1500 sq ‘++ are senior buyers trying to find a reasonable space to live or to ‘park’ after having sold their 2000-3000 sq’ family homes! The other demographic needing larger rental spaces are families who have relocated and haven’t been able to find their perfect next home. Demand for these larger units has produced the same upward pressure on price as for freehold homes and the result is we are experiencing BIDDING WARS on “luxury” RENTALS as well! It would serve our city well if condo developers paid attention to this demand and started to build more AND larger units to buy AND to rent as we do not see this trend disappearing any time soon!
Rental vacancy rates in Toronto hover at 1.2% currently. This is WELL below the national average of 3.3%. At the end of the day, there is an extreme poverty of availability in freehold housing in the city…a balanced supply of condos, and now, not enough rental stock to meet increasing demand. It is my fervent hope that supply on all fronts will finally catch up with demand…demand fuelled by Toronto’s reputation for being a GLOBAL destination…a safe, exciting, enriching place to work, live and play!
By the way, if you know anyone who’s looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful sale or purchase of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect with them, as I would love to offer them my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.