Real Estate

Toronto rent skyrocket after new regulations reduce supply and increased demand

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  • Jan 29th, 2018 9:34 pm
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GTA condo rental prices soar as demand outweighs supply
http://toronto.citynews.ca/2018/01/12/t ... al-prices/


Condo rental prices in GTA reach new heights
The price to rent a condo in the GTA has climbed to new heights — hitting an average of $2,400 per month in downtown Toronto. And stats show people are staying in their units longer too, which may be partly due to new rent control regulations.

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tk1000 wrote:
Jan 12th, 2018 8:47 pm
GTA condo rental prices soar as demand outweighs supply
http://toronto.citynews.ca/2018/01/12/t ... al-prices/


Condo rental prices in GTA reach new heights
The price to rent a condo in the GTA has climbed to new heights — hitting an average of $2,400 per month in downtown Toronto. And stats show people are staying in their units longer too, which may be partly due to new rent control regulations.
Problem with this is, how long can you stay in that 500 sq ft condo before you have to move. Lots of young professionals renting them but soon they will get married and want kids. In my opinion this is the biggest risk of renting over owning. If prices get too high you can be priced out of your own city. With ownership you might over pay but in the long run you'll probably end up okay plus you are locking in the single biggest expense of your life.
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rjg4235 wrote:
Jan 12th, 2018 9:13 pm
Problem with this is, how long can you stay in that 500 sq ft condo before you have to move. Lots of young professionals renting them but soon they will get married and want kids. In my opinion this is the biggest risk of renting over owning. If prices get too high you can be priced out of your own city. With ownership you might over pay but in the long run you'll probably end up okay plus you are locking in the single biggest expense of your life.
That’s what happened to us 6 years ago. Thought is was insane what we paid for our Aurora townhouse. Six years later....buying was one of the best decisions to date now having sold and relocating.
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Wynnes propaganda arm, the Toronto Star lamenting "priced out renters now having to look in the 905"

Well done Wynne. There's not much she can't screw up. This wasn't much of an issue until her nuclear assault on landlords. My question is how far more destructive can she go? Guaranteed she won't be going anywhere in favour of landlord's.
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cartfan123 wrote:
Jan 13th, 2018 1:40 pm
Wynnes propaganda arm, the Toronto Star lamenting "priced out renters now having to look in the 905"

Well done Wynne. There's not much she can't screw up. This wasn't much of an issue until her nuclear assault on landlords. My question is how far more destructive can she go? Guaranteed she won't be going anywhere in favour of landlord's.
Rent has been going through the roof, this is amazing for landlords. One of my condos downtown I was curious what going rate is now and it's over $2300 in my building for a 1 bedroom. I remember not that long ago thinking $1700 was insanely high and so happy with that.
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rjg4235 wrote:
Jan 13th, 2018 3:00 pm
Rent has been going through the roof, this is amazing for landlords. One of my condos downtown I was curious what going rate is now and it's over $2300 in my building for a 1 bedroom. I remember not that long ago thinking $1700 was insanely high and so happy with that.
The increased rents providing support for higher condo prices also. That's a 1/3rd increase in rental price, plus now you get a line up of prospective tenants and can choose ones that are great. The riff raff well, I guess that's why they can't find anything even at the higher rates.
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rjg4235 wrote:
Jan 13th, 2018 3:00 pm
Rent has been going through the roof, this is amazing for landlords. One of my condos downtown I was curious what going rate is now and it's over $2300 in my building for a 1 bedroom. I remember not that long ago thinking $1700 was insanely high and so happy with that.
With the risk of default much higher now, landlords have almost no rights and it takes so long to evict tenant through ltb. Plus they can squat for up to 8 months while they game the system. Landlord unlikely to get this money back.

An increase of rent this high in such short time makes landlords pool of desirable renters much smaller. A higher churn rate will result and might cause some months of vacancy, while trying to find suitable tenant. And remember, All landlords competing for the best quality. Tenants know this, and might take advantage of landlord more offer. Think about more phone calls, asking for more stuff, expecting a lot more responsibility from landlord to fix everything.


It's not like everyone got a 30% pay increase overnight, so how risky the default rate then becomes, and how high yields the rent is, reminds me of the credit quality and risk of junk bonds.
Last edited by Jungle on Jan 13th, 2018 3:31 pm, edited 1 time in total.
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rjg4235 wrote:
Jan 12th, 2018 9:13 pm
Problem with this is, how long can you stay in that 500 sq ft condo before you have to move. Lots of young professionals renting them but soon they will get married and want kids. In my opinion this is the biggest risk of renting over owning. If prices get too high you can be priced out of your own city. With ownership you might over pay but in the long run you'll probably end up okay plus you are locking in the single biggest expense of your life.
Actually, most people especially young ones don't want kids or plan to have them and 500 sqft is not that small

With so much traveling and amenities in the new condos, unit sizes don't matter as much as before.
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cartfan123 wrote:
Jan 13th, 2018 3:27 pm
The increased rents providing support for higher condo prices also. That's a 1/3rd increase in rental price, plus now you get a line up of prospective tenants and can choose ones that are great. The riff raff well, I guess that's why they can't find anything even at the higher rates.
I dunno about this one..The average price on 416 condo is dropping like a rock. In theory it makes sense but reminds me like high yield stocks..everyone jumps in thinking great, high yield. Meanwhile underlying price drops faster than yield provide. Then big risk comes to wether yield can be sustained.
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Jungle wrote:
Jan 13th, 2018 3:31 pm
With the risk of default much higher now, landlords have almost no rights and it takes so long to evict tenant through ltb. Plus they can squat for up to 8 months while they game the system. Landlord unlikely to get this money back.

An increase of rent this high in such short time makes landlords pool of desirable renters much smaller. A higher churn rate will result and might cause some months of vacancy, while trying to find suitable tenant. And remember, All landlords competing for the best quality. Tenants know this, and might take advantage of landlord more offer. Think about more phone calls, asking for more stuff, expecting a lot more responsibility from landlord to fix everything.


It's not like everyone got a 30% pay increase overnight, so how risky the default rate then becomes, and how high yields the rent is, reminds me of the credit quality and risk of junk bonds.
It hasn't been the case though....for anyone with a quality property and pricing it inline with the current rental market... there's tons of demand and good tenant quality also. In many cases tenants for the first time I've seen have their references, pay stubs, credit reports lined up. Way less runaround for landlords when screening than when it was more balanced prior to the "Housing Fairness"

Not to say that rents or prices will stay up here, but for now higher rents are supportive of the higher prices. Rents do tend to be sticky also, but I have seen years where demand dries up and you have to lightening the rates to attract tenants again.
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tk1000 wrote:
Jan 12th, 2018 8:47 pm
GTA condo rental prices soar as demand outweighs supply
http://toronto.citynews.ca/2018/01/12/t ... al-prices/


Condo rental prices in GTA reach new heights
The price to rent a condo in the GTA has climbed to new heights — hitting an average of $2,400 per month in downtown Toronto. And stats show people are staying in their units longer too, which may be partly due to new rent control regulations.

it comes with the territory of a major city, i think every major city in the world have this problem. although gta can easily build more by increasing density as well as making use of the "green belt" for housing. it's a matter of priority, gta needs to decide if they should have lots of green space or lots of housing, since both competing for the same land. the cities in china have tons of high rises next to each other, with next to little space for parks, it makes the city look depressing an artificial, and it's a sacrifice they decided to make.

that said, there are also positives for having ultra high housing prices, it makes low paying job less viable in gta and gets to be pushed to smaller towns, other provinces and other countries, that's another reason why cities tend to have concentrated high paying jobs. if you want to do low value production work, then do it outside of gta.
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Catch 22.

Long-term condo Investor landlords who are reluctant landlords because of the Rental Fairness Act will try to ditch their condos.

Short-term condo investors who can no longer rent via airBnB will do one of two things - try the long-term approach or cash out.

The end result is not good for renters who cannot afford to buy nor for buyers needing a condo large enough for a family.

If owners of 700sf condos and under flood don't flood the market this spring, prices will be stable but if they do the condo market will collapse.
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rjg4235 wrote:
Jul 7th, 2017 12:22 pm
The really ironic thing is I have never increased rent on any of my tenants. They usually don't stay more than a couple years and I know I can get market rent later or increase it if they stay too long. Now with the limit in place I feel obligated to do it every year at the max incase they stay many years and it goes way below market value. For the first time ever I increased rates to current tenants and it's only because of rent control.
100% agree. These new rules do force you to increase. Or else you will be behind and never be able to catch up
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cartfan123 wrote:
Jan 13th, 2018 1:40 pm
Wynnes propaganda arm, the Toronto Star lamenting "priced out renters now having to look in the 905"

Well done Wynne. There's not much she can't screw up. This wasn't much of an issue until her nuclear assault on landlords. My question is how far more destructive can she go? Guaranteed she won't be going anywhere in favour of landlord's.
Maybe this isn't a fair comparison, but it seems like Wynn's actions are just as bad as Trump's ?
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rfdrfd wrote:
Jan 13th, 2018 7:40 pm
Maybe this isn't a fair comparison, but it seems like Wynn's actions are just as bad as Trump's ?
It's actually a bunch of nonsense. Are you one of those triggered that no matter what happens you find a way to bring Trump into the conversation?

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