Are you looking to purchase an investment property in Toronto? You’ve made the right choice – Toronto is one of the most rewarding rental markets in the world. We’ve put together some statistics and information to demonstrate just how the Toronto rental market stacks up against cities in Canada and the United States.
According to the Canadian Mortgage and Housing Corporation (CMHC)’s Rental Market Report, from 2014 to 2015 the apartment vacancy rate in Toronto remained at a steady 1.6%. This means that for every 1,000 rental homes, apartments, and condos in Toronto, only 16 are unoccupied by a tenant.
In comparison, 2015 saw Ottawa at 3.4%, Montreal at 4.0%, and Calgary at 5.3%. In the U.S market, the vacancy rate for Manhattan was at 2.3%, LA at 2.7%, San Francisco at 3.6%, and Chicago at 4.63%. Only Vancouver (0.8%) is a more competitive rental market.
So what exactly does this mean? It means that in comparison to other major cities in North America, Toronto continues to display a healthy, steady rate of variables that are keeping vacancy rates low. More people are seeking out the convenience, simplicity, and affordability of apartment living. This equates to higher demand for rental properties throughout the city.
For rental fees, the average one-bedroom apartment in Toronto is priced at $1,085 per month. In comparison, you have Vancouver at $1,062, Ottawa at $941, Calgary at $1,137 and Montreal at $660. For major U.S cities, you’re looking at Manhattan $3,290, LA $1,890, San Francisco $2,802 and Chicago $1,670, just to add some more perspective to the Toronto market.
With these comparisons, it’s no wonder that Toronto’s rental properties continue to be as hot as they are. Developers and investors have begun turning their eyes from condo development to purpose-built rental properties as more and more economic trends point in that direction.
With an increasing number of baby boomers downsizing, looking for a more affordable and practical space to live in, combined with millennials transitioning away from homebound life through rental property, the opportunities in the rental market are clearly undeniable.
The fact that vacancy rates have remained extremely low in Toronto shows that the economic fundamentals not only exist, but are also strong enough to make anyone confident about taking advantage of purchasing property for the purpose of renting it out.
The bottom line is that the statistics show the trends that are happening throughout the city and the overall market, and those trends are clearly in favour of the Toronto rental market. So if you’ve been considering opting in on this opportunity, now is the time.
Medallion Capital Group helps Toronto property owners and condominium corporations achieve their financial objectives with comprehensive property management services. We have intimate knowledge of the Toronto rental market to help homeowners and investors get the most out of their rental properties, from preparing detailed market analysis reports and setting optimal rental rates, to finding and managing great tenants to pay that rent.