Toronto Rents Rise 9.1% In 3 Months... Vacancy Falls To 0.3%

[Economy 52,842]

https://www.bnn.ca/average-monthly-rent-for-a-toronto-condo-rises-9-1-to-2-166-in-q4-urbanation-1.966099

 

Im the last quarter condo rents (condos now make up over half the city units) went up 9.1%

 

Vacancies fell to 0.3% or in other words less than 1 in 300 units are empty.  A balanced market should have at least 3% vacancy or 1 in 33 units

 

The new statistic highlights why stress tests, tougher downpayment rules and shorter amortizations are not working to cool the market as the simple fact remains that the city has a very severe housing shortage like many other parts of Canada as well

[Economy 52,842]

@juicyjuicy arent u in a Toronto condo?

[LePetitGAGABLover 21,234]

Edit: I read the article wrong.

[Computer 10,980]

There better be construction cranes EVERYWHERE.

[Economy 52,842]

24 minutes ago, Computer said:

There better be construction cranes EVERYWHERE.

There are! A few years ago Toronto had more skyscrappers under contruction than the rest of North America combined and we had the most cranes in the world after dubais construction slowed down

 

I dont think we have more than rest of North America combined anymore since US construction has largely recovered but its still a lot

 

 But this is what happens when half of the 300,000 immigrants a year (its going to rise to 350,000) all decide Toronto is the best place in the Country to move to

 

Severe housing shortages become a problem

 

The Government is trying to prevent a crash with crazy mortgage rules to try and cool demand and keep prices from rising further but I think its obvious by now that supply is the problem we have to stop comparing our housing boom to the one the USA had before the crash

 

Also tougher lending rules to try to keep price gains slower may be causing faster gains in rent hikes because if you cant qualify for a mortgage more people are forced to compete for rents

 

Forein buyers tax, Max amortizations down to 25 years, downpayment requirements of 20%, stress test that you must qualify for mortgage if rates rose 2% and other mortgage rule tightning have done nothing to cool the market. Sometimes it cools it for a few months as people get cautious then it goes back to business as usual  

 

Its a mess. I live in a city near Toronto and ive started looking at condos/apartments as one possibility and 70% of the buildings dont have even 1 unit that is vacant

 

and some open houses create a massive lineup that goes around block especially in wanted areas its actually insane

 

The North end of my city in the suburb outer limits near farm land has average sized homes selling for $800,000  

 

My grandparents small falling apart 115 year old house in Toronto has a value of $1.4 Million  

[Economy 52,842]

32 minutes ago, LePetitMonstr said:

In THREE months. What a mess.

The Government keeps putting new rules to try and cool the market

 

the latest change was a stress test that you need to qualify for your mortgage even if rates went up 2%

 

I think whats happening now is so many people cant qualify for rules that have become so strict and they are forced to compete for renting space since they cant afford a mortgage

 

and the rich that have no problem qualifying to buy a house benefit by buying up houses and condos to rent them out at ever rising prices

 

I think the Government needs to chill. The circumstances in the housing boom are different than the US housing boom so I think a hard crash is unlikely

 

Making rules so hard people cant qualify for a house is not only creating more problems than it solves, but it doesnt deal with the fundamental issue... the housing shortage

[Easy 5,319]

It’s a chain reaction. Chinese buying properties in Hong Kong and now my generation can’t afford anything but houses in Toronto. This leads to Canadian unable to buy Toronto houses.

I dislike the fact that many of us Hong Kongers (at least 10+ of my friends) buy houses in Toronto coz it affects people who actually need a house there. But you can’t really blame when an average quality apartment in the city of Hong Kong costs around USD$2800/sq. ft., the only place to invest is (comparatively) cheap Toronto properties. FYI, my house in the country side is nearly USD$3000/sq. ft. Coz it’s new and has an ocean view. It’s ridiculously expensive.

And with that price tag you are not buying a quality living space. Coz the lump sum would be too high if the developers actually build houses with enough living space with that per sqft price. Now we consider a 2 bedroom 300sqft house (which probably costs 1.5mil USD) decent 

[Economy 52,842]

6 minutes ago, Easy said:

It’s a chain reaction. Chinese buying properties in Hong Kong and now my generation can’t afford anything but houses in Toronto. This leads to Canadian unable to buy Toronto houses.

I dislike the fact that many of us Hong Kongers (at least 10+ of my friends) buy houses in Toronto coz it affects people who actually need a house there. But you can’t really blame when an average quality apartment in the city of Hong Kong costs around USD$2800/sq. ft., the only place to invest is (comparatively) cheap Toronto properties. FYI, my house in the country side is nearly USD$3000/sq. ft. Coz it’s new and has an ocean view. It’s ridiculously expensive.

And with that price tag you are not buying a quality living space. Coz the lump sum would be too high if the developers actually build houses with enough living space with that per sqft price. Now we consider a 2 bedroom 300sqft house (which probably costs 1.5mil USD) decent 

Its all ur fault  

 

anyway what do the ppl there think of the 15% forein buyers tax they just introduced? Is it preventing any new buyers?

 

Montreal real-estate has been surging ever since Toronto slapped that tax

 

anyway def its not helping cuz our population is growing too fast in specific areas and construction isnt keeping up

 

Toronto when I moved to Canada 16 years ago:

 

 

Toronto now:

 

 

[Easy 5,319]

18 hours ago, Economy said:

Its all ur fault  

 

anyway what do the ppl there think of the 15% forein buyers tax they just introduced? Is it preventing any new buyers?

 

Montreal real-estate has been surging ever since Toronto slapped that tax

 

anyway def its not helping cuz our population is growing too fast in specific areas and construction isnt keeping up

 

Toronto when I moved to Canada 16 years ago:

 

 

Toronto now:

 

 

15% tbh is nothing to us. Adding another 15% is still as cheap as houses of HK 20 years ago. This is for first time young buyers.

If the buyers are rich investors that won’t matter too, coz owning more than 1 property in HK means paying 2x the tax, that 15% has no deterrent effect at all.

[Economy 52,842]

4 hours ago, Easy said:

15% tbh is nothing to us. Adding another 15% is still as cheap as houses of HK 20 years ago. This is for first time young buyers.

If the buyers are rich investors that won’t matter too, coz owning more than 1 property in HK means paying 2x the tax, that 15% has no deterrent effect at all.

Yeah but if ur buying to not live here and just make money, 15% adds risk because now home prices have to rise 15% just to make profit

 

Also many global cities dont have this tax

 

thats why i asked if it made a difference

[Easy 5,319]

13 hours ago, Economy said:

Yeah but if ur buying to not live here and just make money, 15% adds risk because now home prices have to rise 15% just to make profit

 

Also many global cities dont have this tax

 

thats why i asked if it made a difference

But even with that 15% extra tax the rental return is still a 3%+, much better than many cities like Hong Kong, New York or Beijing Shanghai.

[Economy 52,842]

8 hours ago, Easy said:

But even with that 15% extra tax the rental return is still a 3%+, much better than many cities like Hong Kong, New York or Beijing Shanghai.

True on the rental

[Delulu Rogers 7,662]

If the government would just halve the number of immigrants it lets in until construction catches up all this would be solved. The number is too high anyways

[Economy 52,842]

4 hours ago, ChrisC said:

If the government would just halve the number of immigrants it lets in until construction catches up all this would be solved. The number is too high anyways

The number isnt too high the problem is some government policies are hindering construction