Apartment rentals in Toronto have been rapidly increasing in prices for years. The city’s popularity, urban feel and bustling economy have made it a magnet for people from all over the country, and the supply of residential real estate has never been able to keep up. However, in national terms the city’s crown as the most expensive place to rent has slowly been usurped by the booming city of Vancouver. Toronto is now the 2nd most expensive city for apartment rentals after Vancouver has claimed the top spot.
It probably comes as no surprise that Vancouver and Toronto share the top 2 spots due to their red hot real estate markets that have become so inflated that governments have started stepping in to cap speculation. The increasing value of all real estate in these two cities combined with extremely thin vacancy rates lead to eye-watering rents for everything from office space to apartments.
https://apartmentlove.com/ontario/toronto, an apartment listing site, has published monthly reports on national rental prices since June of 2016, during which time Toronto and Vancouver have been locked into the top two spots for the most expensive rental markets across the country. The third place has meanwhile switched back and forth between Calgary and Victoria.
The rental rates for one-bedroom apartments in Toronto spent the year hovering between $1,310 and $1,350 per month, while the rates for Vancouver reached a staggering $1,700 to $1,750. This widening gap was even more pronounced when comparing the numbers for two-bedroom apartments, where there was a spread of as much as $1,000 over the rates for comparative two-bedroom apartments in Toronto.
While the new rules on the sale of residential properties in Vancouver have already had a dampening effect on home prices there, there is little expectation that the slowdown will have a significant impact on rental prices. House prices in Vancouver are already so far out of reach for most people in the rental crowd that a slowdown will make little difference in the number of people who choose to buy instead of rent. The geographic crush of Vancouver’s location between mountains and the ocean also mean that there is little room for expanding the city’s stock of rental properties. It is expected that despite Toronto’s own red-hot property and rental markets, the rental rates in Vancouver will continue to widen the gap, leaving Toronto in a firm yet distant 2nd place for rental rates across the country.