How to save money on condo rentals
Residents in Toronto’s condo market are struggling to find new places to live.
The city’s rental vacancy rate is at 7.8 per cent, compared to a national average of about 7 per cent.
With no shortage of vacancies in the market, many are struggling financially to pay rent and are looking to find somewhere cheaper.
A new report from the Canadian Real Estate Association finds the number of listings for rental units in Toronto rose by 7.5 per cent in the past year.
Some condo operators are scrambling to fill up vacant units and are making offers to rent out units to new residents.
A spokesperson for the Toronto Real Estate Board said some of the condo units being advertised in the city have been vacant for more than a year.
“We’ve had a lot of requests to put new units on the market,” said Stephanie Ouellette, spokeswoman for the agency.
“The vacancy rate for the condos that are on the marketplace is just 7.6 per cent.”
Ouellic says some of these new listings are being placed in areas that are far away from major destinations, like the city’s financial district and the waterfront.
“Some are in places where the area isn’t necessarily a walkable place, and we’re not going to have people in those areas, for example, who are able to get in on the condo market,” she said.
Ouellett said the agency is “not aware of any new condo construction in those places.”
In the past few years, condo sales have been increasing.
Toronto’s vacancy rate has been at 7 per, while the national average is at 4.4 per cent and Vancouver’s is at 3.5.
In 2018, condo buyers in Vancouver sold a record 7.7 million units.
In Toronto, condo prices have been climbing for the past five years.
In May 2018, the average condo price in Toronto was $2.45 million.
According to a survey by the real estate research firm CBRE, the number in the country is up by more than $1,000 per square foot.
That’s more than double the average price of a single-family home in Toronto.
The average price in the Toronto area has increased by $5,000 since January.
According the survey, condo occupancy rates in Toronto are now higher than in any other major Canadian city.
However, the condo vacancy rate in Toronto is still well below the national rate.
“While there is some positive news, condo ownership has declined substantially in the last year or so,” Ouellet said.
“Many condo owners are seeing condo sales decline, and the supply of condos is becoming very limited.”
A spokesperson from the Real Estate Council of Greater Toronto said that the rental vacancy in the GTA has been rising and that it is a matter of “real concern” that condo owners can’t find housing that meets their needs.
The spokesperson said that Toronto condo sales are up in many parts of the city, and there is no indication of a slowdown in condo construction.
“Our concern is that many condo sales in Toronto may be occurring on the same property,” said the spokesperson.
“Condo sales tend to occur in areas where supply and demand are similar and there may be no demand for condos in the neighbourhood.
We don’t know what that is like yet.”
The spokesperson says condo owners should look to the GTA as a place to find a place that’s close to major destinations.
“When you’re trying to sell a property, you don’t want to have it at the end of the street, where people are looking for condos,” said Ouel-lic.
The housing shortage is hurting condo sales and condo rental prices.
The real estate board says that the condo industry in the Greater Toronto Area is “lagging” in the rental market.
“At the same time, condo owners need to be mindful that their property is not affordable, and they may need to sell their unit before they can sell the condo,” Ouedlett said.