Toronto rental prices have jumped by 20% or more in June from last June!
Data from Rentals.ca shows the average 1 bedroom increased by 18.5% over last year and 2 bedrooms have increased by 23.4%!
Average rental price of 1 bedroom median price in Toronto is $2100, an increase of 5% from last month and 2 bedrooms have grown 2.7% from last month to $2700, according to Zumper.
Canada’s immigration is continuing to go up and demand is not slowing down as borrowing costs are pushing buyers into the rental market. According to Urbanation, GTA vacancy rates declined to 1.4% from 5.1% a year ago with 0.3 months of rental inventory.
With the cost of borrowing increasing with the rise in interest rates, many first time buyers are priced out of the market and relegated to the rental market.
Rental construction is stalling. According to Urbanation, new construction almost completely stopped in the second quarter with a low of only 87 rental starts, down from an average of 1,916 starts during the preceding four-quarter period. With almost no new starts, there are still 18,976 rental units currently under construction which are near a multi-decade high.
Having said that, with rising interest rates, cost of materials and labour shortage, according to these reports, Toronto could see a wave of condo projects cancel.
There are more people coming into the country than ever and we don’t have enough housing and we can’t build more housing because we don’t have enough people to build the houses…
If you are thinking of buying an investment property, this is the time to do it.
Book a free call with me to chat about your options.
📲 647-504-0690
📧 steven@mistersauga.ca
Instagram: @mister_sauga