As the real estate market cools down brought about by the tightening of mortgage rules and a slow down in new house and condo construction, Toronto renters become victims of the condo boom. The latest news report says that the new bidding-war battleground is in the rental market. Demand is so high because high rise condo projects do take time to build so that the number of new rental units ready for occupancy isn't enough to fill the gap. Clients are bewildered by the fact that there seem to be a lot of cranes that dot the skyline but many can't find a place to rent or end up losing in a bidding war for a rental.
Why are there bidding wars in rental properties? Here are some interesting info and stats:
- More and more people look to live and work downtown.
- While it took 2.68 years from start of sales to occupancy decades ago, it's now taking at least four years before these units translate into real places to live. Builders attribute this to a host of factors like smaller build sites, more complex designs and taller buildings that require more intricate planning.
- Vacancy rate now hovers around 1.4 per cent, down from 3.5 per cent in 2009
- The downtown crowd, mostly young professionals who work long hours, are willing to up the ante for the convenience of walking back and forth to work, even home for lunch.
- More people are willing to pay more for the lifestyle but the supply is not able to meet this demand.
This is good news for those who have chosen to invest in the future of Toronto and that is to help build a city that meets the demands of this generation and generations to come.