Canada’s largest city has overtaken Vancouver to take the cake as the city with the highest rents. According to Padmapper, a database for rental information, Toronto’s average rent now averages $2,020 from a 15.4% in a year, going over Vancouver’s $2000 average.
Part of the reason for the increased rent is a dwindling supply of housing which may be surprising based on the fact that so many condos are being built.
Torontonians have been dealing with the shortage of rental housing for many years. Canada Mortgage and Housing Corp. (CMHC) has reported that during November last year, Toronto hit the lowest level in 16 years with vacancy rates at 1.1% for apartments.
- The number of leased units falls by 11% over this past year.
- Condo rental prices have increased 9.1% over this past year.
- The number of new listings have dropped by 16% over this past year.
While rents are rising all across the board, many tenants are staying put as opposed to searching for new housing. Let’s hope that the GTA housing supply can increase over the short term so the region can sustain a healthy real estate market and economy.