Everyone knows about Toronto’s hot housing market, so it should come as no surprise when there is a spillover effect into the rental market.
As a Destination Services specialist, All Points saw an almost unprecedented low number of rentals on the market this summer contributing not only to higher rental rates, but an extreme challenge for assignees and permanently relocated employees to find suitable homes. Rental turnover occurred within one day in most cases.
An article in the Globe and Mail (Short link at https://tgam.ca/2koo136) notes that average rents for condos rose 11.7 per cent in the fourth quarter. Meanwhile, Condo, Canada’s Condominium Magazine reported that vacancy rates for Toronto condominiums had dropped to 1.2 per cent. That is not statistically different than zero percent.
How does it affect relocation?
As a relocation services expert, All Points knows that our clients expect us to share our outlook on the ways in which these developments impact the world of relocation.
- For those with assignees, if you derive rental rates from cost of living sources, you should be aware that these rates are likely to be consistently behind actual Toronto rental rates.
- For assignees in their second or third year, rental rate hikes could put them out of line with originally established rates based on cost of living data.
- For domestic relocation, those that relocated from other cities to Toronto may not have always been able to purchase, but they were able to satisfy themselves by finding a rental home. This may no longer be the case. In most instances, their origin home’s mortgage payments, utilities, property taxes and general upkeep will not be as high as Toronto rental rates for a home suitable to their family.