Here’s the scoop on the multifamily housing scene: Overall in Canada, the rental market is thriving, with tight vacancy rates hitting a record low of 1.5% in October 2023. And yes, I completely recognize that in Toronto, each neighbourhood varies and each building has it nuances. But overall, it is healthy and thriving.
Average rents surged by 8.8% year-on-year in March, driven by high housing costs and a shortage of purpose-built apartments. Note though, with the government’s plan to reduce non-permanent residents, this may affect population growth; it may slow, offering some relief to the market. While Greater Toronto is grappling with a surplus of condos, other regions are stepping up to balance demand.
Across the border in the U.S., rental markets are less tight, with vacancy rates up and rent growth moderating. Despite this, renting remains more affordable than owning, attracting demand amidst high homeownership costs. Although for condo dwellers, I have had numerous conversations over the past several months about if now is the right time to buy a condo, because the condo space has balanced out.