All Points Relocation Service Canada Sees Huge Spike in Toronto Rental Prices
Toronto rental rates are at all-time highs. The average monthly rent for a condo in the city is now $2,385, according to Urbanation Inc.
This is a 7.6% jump in rental rates in one year. Such eye-popping figures create challenges for those relocated to Toronto. All Points Relocation Service traces the fastest increase in rental prices since the summer, with the rising pace being slower before that time. Since June, prices have climbed steadily.
Cost of Housing Studies need to be updated immediately
For those companies that provide housing allowances, All Points Relocation Services Canada strongly recommends immediate updates if you are getting annual data. Annual data is most definitely out of date for Toronto. However, there are real challenges also for those who do not have housing support. Their information about the market is often out of date (often based on anecdotes from co-workers) and their expectations are unrealistic as to what they can get at what price. Just think: if their new salary is based on compensation data that is also one year old, or based on what others make locally performing the same job, then salaries are bound to be behind what has been a 7.6% rental increase.
We see no end in sight
All Points Relocation Services Canada notes that an assignee should expect to pay $2,200 approximately for a one bedroom modern condominium apartment. However, even the older, purpose built rental buildings are expensive by yesterday’s standards. The Toronto Region Board of Trade says that a lack of places to live is affecting the city’s ability to retain talent – they consider the situation very serious. Urbanation notes that this may calm down as more condominiums are completed in the coming year, but the pressure on rental prices seems relentless.
Why is this happening?
Toronto still attracts a huge number of newcomers, being relocated for jobs or otherwise, and they are mainly renters. In the past, a small percentage of them purchased condominiums, but since the government’s imposition of the Non-Resident Speculation Tax – these people entered the rental market. However, far more than that, when the purchase prices of Toronto homes rose to their height in April 2017, then many people formerly interested in purchasing gave up on that dream. They left the home buying market and joined the ranks of renters. This pushed the number of renters up drastically.
Companies should prepare assignee expectations for a tough Toronto market, because All Points Relocation Services Canada predicts further increases this summer.