10 Stats that show Canadian Rental Demand is out of control

Photo: James Bombales TowerPicsRental vacancy rates across Canada plunged this year, as demand for rental units outpaced supply.

According to the Canada Mortgage and Housing Corporation’s (CMHC) 2017 Rental Market Survey, the national vacancy rate for purpose-built rental apartments fell from 3.7 to 3.0 per cent in 2017, the first decline in the last two years. “Nationally, increased demand for purpose-built rental apartment units outpaced growth in supply,” CMHC senior market analyst Gustavo Durango said in a statement. “Demand can be attributed to historically high levels of positive net international migration, improving employment conditions for younger households and the on-going aging of the population.” Here are 10 stats that put the falling rental vacancy rate into perspective. 1. The nationwide vacancy rate has decreased to 3 per cent, a 0.7 per cent drop from October 2016’s 3.7 per cent. “This reverses the increases observed in 2015 and 2016 and leaves the vacancy rate at its 10-year average,” writes the CMHC. 2. Toronto has one of the lowest purpose-built rental vacancy rates in the country, at 1 per cent. A rate of 3 to 4 per cent is considered healthy by the CMHC. Other cities with low rates include Kelowna at 0.2 per cent, Victoria (0.6 per cent), Vancouver (0.9 per cent) and Kingston (0.7 per cent). 3. While new rent control legislation was introduced in April with Ontario’s Fair Housing Plan, few steps have been taken to address the low rental vacancy rate in the Toronto market. According to a report commissioned by the Federation of Rental-housing Providers of Ontario, more than 1,000 planned purpose-built rental units have been converted to condos since the policy came into effect. 4. The highest vacancy rates can be found in the Canadian prairies, with Saskatoon at 9.6 per cent and Regina at 7 per cent. 5. Since October 2016, the number of purpose-built rental apartments in Canada increased by only 1.2 per cent. That’s roughly half of the growth rate from 2015 to 2016. 6. The largest rental price increases were led by BC — with increases of 8.6 per cent in Kelowna, 8.1 per cent in Victoria and 6.2 per cent in Vancouver — and Ontario, with increases of 5.9 per cent in Belleville, 5.2 per cent in Oshawa, 5.1 per cent in Hamilton and 4.2 per cent in Toronto. 7. The national monthly rent for a two-bedroom purpose-built rental apartment is $989, while in Toronto the average rent is $1,404 and in Vancouver it’s $1,552. 8. The lowest rents in the country are in Trois-Rivieres ($594), Saguenay ($605) and Sherbrooke ($631). 9. While vacancy rates were down, the national turnover rate stood at 20 per cent, largely unchanged from October 2016. 10. The national average rental condo vacancy rate fell from to 1.9 per cent in 2016 to 1.6 per cent in 2017. Victoria had the lowest rate at 0.2 per cent.   Source: BuzzBuzzNewsCanada

Category: Starion Blog

10 Stats that show Canadian Rental Demand is out of control

Photo: James Bombales
TowerPicsRental vacancy rates across Canada plunged this year, as demand for rental units outpaced supply.

According to the Canada Mortgage and Housing Corporation’s (CMHC) 2017 Rental Market Survey, the national vacancy rate for purpose-built rental apartments fell from 3.7 to 3.0 per cent in 2017, the first decline in the last two years.

“Nationally, increased demand for purpose-built rental apartment units outpaced growth in supply,” CMHC senior market analyst Gustavo Durango said in a statement. “Demand can be attributed to historically high levels of positive net international migration, improving employment conditions for younger households and the on-going aging of the population.”

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Your Tenant Secretly Wants to Buy Your Home 

“What’s going on with the rental market? There is nothing to rent. Everything is either leased or has 3 offers . . . or super expensive!!!”

“Went in with $150 over asking with extra months up front. Married couple. What more do you want? They had 10 offers on the place.”

“The listing agent informed me that we were the highest offer but the landlord decided to go with another one.” 

That’s a snippet of what we’ve been hearing lately. In short, the Toronto rental market is insane. The Toronto Star recently ran a story about average rent in Toronto passing the $2,000/month mark, an 11% increase year-over-year. But the average rent of a condo in Toronto has been above $2,000/month since July 2016, so it’s not really the price that’s the problem. It’s that supply is being pinched and demand is rising. This being the case, tenants are looking at other possible options and one of them is doing whatever it takes to pay their own mortgage and build equity instead of paying rent. Continue reading ..

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Photo: Ashley Fisher/Flickr

Here’s how many first-time buyers are opting for condos across major Canadian markets

Many first time buyers in Canada’s biggest cities are settling for less square footage when entering the housing market, but a new study from Genworth Canada tracks just how many are opting for condos over detached homes and townhouses.

According to the residential mortgage insurer’s 2017 First-Time Homeownership Study published this week, first-time homebuyers in the nation’s hottest markets are resorting to more affordable condominiums over detached homes and townhouses. Continue reading ..

Condos are king in the Greater Toronto Area and Heres why 

condo canada

 

Records continue to fall in the nation’s hottest housing market.

Condo sales were up 79% year-over-year in February and far outstripped home sales for low-rise units.

“In the GTA in February, there were more than twice as many new condo apartments sold (as) low-rise units,” the Building Industry and Land Development Association (BILD) said in its latest report. “Altus Group recorded 3,542 sales of condo apartments in stacked townhouses and mid and high-rise buildings, and 1,541 sales of new detached and semi houses and low-rise townhomes.”
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WHAT’s DRIVING VAUGHAN’S NEW DOWNTOWN??? TTC: A Tour of Vaughan’s Metropolitan Centre Station.

“I think this may be my favourite of the stations,” said Joanna Kervin, the director for Third-Party Planning and Property with the TTC‘s project to extend the Line 1 (Yonge–University) subway northwest to Vaughan. Kervin led members of the UrbanToronto team on a sneak-preview tour of the Vaughan Metropolitan Centre Station, the northern terminal for the extended line, which the TTC is planning to open at the end of 2017.  Continue reading ..

ont-economic-update-201511262016 Ontario Economic Outlook and Fiscal Review – Doubling the Maximum Refund for First-Time Homebuyers

Modernizing Land Transfer Tax and Other Tax Measures

Land Transfer Tax 

The Province is proposing to modernize Ontario’s Land Transfer Tax (LTT) system to reflect developments in the real estate market, by: 

  • Enhancing support for first-time homebuyers;
  • Updating LTT rates and brackets; and
  • Restricting the refund for first-time homebuyers to Canadian citizens and permanent residents.

Doubling the Maximum Refund for First-Time Homebuyers 

To help Ontarians buy their first home, the Province is proposing to double the maximum refund for first-time homebuyers from $2,000 to $4,000, effective January 1, 2017.
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Bank of Canada makes rate announcement

The Bank of Canada held the target for the overnight rate at ½% Wednesday.

Canada’s economy shrank in Q2, according to the BoC; however it’s still predicting a bounce back by the end of the year.

“Second-quarter GDP was pulled down by the Alberta wildfires in May and by a drop in exports that was larger and more broad-based than expected,” the Bank of Canada said in its announcement. “Exports disappointed even after accounting for weaker business and residential investment in the United States, adjustments in the resource sector, and cutbacks in auto production.”

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OREAINSIGHT

INSIGHTS – Home sales set new all-time record in May
Highlights
  • Residential sales up 9.3% in May 2016 compared to a year earlier.
  • New listings in Ontario numbered 40,432 units in May 2016, a decrease of 7.9% compared to last year.
  • The provincial average price of homes in May 2016 rose 12.8% compared to a year earlier.

Decade of Development to Transform Etobicoke’s Queensway

T’s not close to Downtown Toronto, and it’s not walking distance to a transit hub. Yet, in the stretch between Islington and Kipling Avenues, The Queensway could become one of Toronto’s most active development nodes. Though still lined with the strip plazas, warehouse industrial, and parking lots of older suburbia, the Etobicoke Street is attracting a huge wave of high-rise projects, with a 36-storey tower at 30 Zorra Street recently joining the neighbourhood’s proposed developments.

30 Zorra Street, Toronto, by MSAi

The east and south elevations (l-r) of 30 Zorra Street, image retrieved via submission to City of Toronto

Designed by MSAi, the 379-unit condo tower would join an area already being re-made by three phases of the Remington Group‘s IQ Towers. Located Continue reading ..

Did you know? If a market correction happens, it would benefit Leading Real Estate Investors.

It may go against conventional wisdom, but this is why investors may want to start cheering for a correction. Other real estate investors may want to start fine tuning there investment strategy for the longterm.

There are two major reasons investors would benefit from a market correction, according to one leading investor.
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