Toronto landlords with vacant units could enjoy as much as an
11% hike in rent next year.
That’s according to Rentals.ca’s National Rent Report, which
only studied empty units and also forecasted that rents nationwide
would increase 6% in 2019.
Ben Myers, president of Bullpen Research &Consulting Inc.,
notes that the breakdown in Toronto is pretty evenly split between
purpose-built rental apartments, which skew older, and newer
condominium rental units.He also says that Toronto chronically
under-delivers the number of units needed every year, and it’s
contributing to rising rents.
“There’s probably demand for about 25,000 new rental units a year,
and we’re delivering somewhere in the neighbourhood of 2,000 new
purpose-built rentals and 18,000 to 22,000 condo rentals,” he said,
“which means we’re under-delivering by 3-5,000 units every
year.”
The preference remains for newer, lavish units, which typify
condo rentals.
“Renters like a higher level of finish and newer amenities, and
some of the older buildings might be larger but they’re not
providing the lifestyle some of these renters are looking for,”
added Myers.
The preponderant reason for the double-digit market rental hike
in Toronto has to do with the economics of purchasing a condo unit
in the city.In downtown Toronto, investors are buying in at between
$1,000 and $1,200 per square