Why is rent so high in Toronto?
Toronto’s vacancy rate is still very low, hovering around 1%. As more would-be buyers are priced out of the market, they are forced to live longer as renters.
Toronto’s vacancy rate is still very low, hovering around 1%. As more would-be buyers are priced out of the market, they are forced to live longer as renters. The repercussions of the Rental Fairness Act of 2017, which had intended to protect renters from dramatic rent increases, actually led to more developers building condos over purpose-built rentals.
With fewer incentives for developers to build purpose-built rentals, the much-needed supply of affordable housing on the horizon started to dwindle. The lack of new rental supply during this period caused the vacancy rate to drop and the rents to rise. If it weren’t for condo investors buying pre-construction condos as rental properties, there’d be far fewer rental units available still.
More buyers have started looking at houses outside the GTA area hoping to sacrifice convenience for a better price. The further you stray from downtown, the more affordable housing becomes. With that being said – don’t expect a big dip in prices anywhere in Ontario. As long as you’re searching within a 100km radius of Toronto, prices are always going to be on the higher side.
However, it’s up to you to weigh the pros and cons you desire for your lifestyle. if you want to live near work and save time commuting, you may need to pay more to do so. Or, if you’re okay with spending a quarter of each day commuting from the suburbs in exchange for homeownership, that’s a choice you need to make for yourself.