It might be a familiar sentiment for long-time Toronto residents to believe that the city has perpetually grappled with a shortage of rental housing. Low vacancy rates have persisted for decades.
To put this into perspective, consider the average condo rent in January 2016, which stood at $1,866, and compare it to the figure of $2,786 in June 2023. This signifies a substantial $920 increase in the average rent over a span of seven and a half years.
If it seems like Toronto’s rental crisis is a material issue to be concerned about, that’s because it is indeed worsening.
To emphasize the point further, annual condominium rent increases in Toronto after 2016 have been occurring at a rate five times faster than before 2016.
Before 2016, Ontario’s population was growing at an average rate of 125,000 people per year. Between 2016 and 2020, this figure exceeded 200,000. Although there was a slight dip in 2020 due to the COVID-19 pandemic, Ontario’s population has surged by over 500,000 in the past twelve months, underscoring the escalating demand for housing in the region.
For as long as we will be experiencing a demand for rentals, the rental crisis will continue to persist. My own experiences this year with my clients have proven this true, with multiple offers and above asking scenarios for rentals.