Real Estate

Toronto rent is skyrocketing

  • Last Updated:
  • Feb 18th, 2018 7:13 pm
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[OP]
Sr. Member
Dec 23, 2010
940 posts
382 upvotes
Moon
rjg4235 wrote:
Feb 13th, 2018 12:00 pm
Back to the discussion at hand. Rent is increasing and this is exactly why.

Everyone is going on about landlords and tenants and no one wants to face the facts. Rent is going up. A lot.
And we all have Wynne regulation to thank for that. Government regulation proven to be a disaster time and time again.
Penalty Box
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Aug 11, 2005
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It's not a disaster, landlords just found a loophole. It's time to close that loophole and ensure rent controls persist even with different tenants.
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Feb 22, 2011
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Applesmack wrote:
Feb 13th, 2018 12:01 pm
And we all have Wynne regulation to thank for that. Government regulation proven to be a disaster time and time again.
That's the ironic thing. Even with the new FBT and stress tests all they have done is hurt the top end of the market. Condos and start homes are still extremely out of reach for first time buyers. Ironically this has only really helped people who already owned and want to upgrade. Now they can sell their condo or starter home for top dollar and get that McMansion for a couple hundred thousand more.
[OP]
Sr. Member
Dec 23, 2010
940 posts
382 upvotes
Moon
Luckyinfil wrote:
Feb 13th, 2018 12:04 pm
It's not a disaster, landlords just found a loophole. It's time to close that loophole and ensure rent controls persist even with different tenants.
Looks like Wynne's voters (thank god there aren't many left) are now trying to ruin the lives of tenants even further. They have made their homes incredibly expensive and now seek to have those homes taken away entirely. I feel really bad for tenants if Wynne gets another government. Thank god she wont LOL. I think Trump has a higher approval rating.
Penalty Box
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Aug 11, 2005
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Applesmack wrote:
Feb 13th, 2018 12:07 pm
Looks like Wynne's voters (thank god there aren't many left) are now trying to ruin the lives of tenants even further. They have made their homes incredibly expensive and now seek to have those homes taken away entirely. I feel really bad for tenants if Wynne gets another government. Thank god she wont LOL. I think Trump has a higher approval rating.
A Wynne majority is now certain with the PC turmoil. Increased regulations are certain which is good because it will drive down prices and make it more affordable for Ontarians.
Deal Addict
Oct 29, 2010
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Luckyinfil wrote:
Feb 13th, 2018 12:11 pm
A Wynne majority is now certain with the PC turmoil. Increased regulations are certain which is good because it will drive down prices and make it more affordable for Ontarians.
Wynne's ratings are so low that I don't think it matters who the leader of the PC's is going to be.

As for rent increase, why wouldn't it go up? There was already a huge gap between the cost of owning and the cost of renting, all those regulations just added more risk/pressure so landlords who are getting new tenants know they must jack up the price or they may not have another chance for years to come.

If you're an employee who's only getting 1% increase year over year for years, wouldn't you jump ship if you saw the first sign of a big pay increase? Most people would, it's the same thing.
You only want to give 1% year over year? Then I'll make sure to change jobs and maximize my earnings that way.
Newbie
Jan 31, 2016
36 posts
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Burnaby, BC
Sanyo wrote:
Feb 12th, 2018 11:30 am
Rents are still very cheap compared to most major cities ...
Have you looked at rent prices for GTA on craigslist and Kijiji? It is close to the rent prices on Vancouver. If you look at Quebec and BC suburbs rent costs, it is about 20% to 30% cheaper.

It could a number of factors including a lack of housing,high electric costs (specifically Ontario) or government regulations.
Last edited by papermoney on Feb 13th, 2018 12:28 pm, edited 1 time in total.
Deal Guru
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Nov 15, 2004
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FrancisBacon wrote:
Feb 13th, 2018 11:41 am
The reason that Ontario pays so much for its electricity, and is projected to pay even more in years to come, is due to government mismanagement and poor regulations. It's weird that you're holding up electricity regulation as some sort of good example, when it's in fact an example of government making a hash of things.
The reason Ontario pays so much for its electricity is because Ontario Hydro built a bunch of nuclear plants they could pay for, and everyone has been kicking the bill down the road to their kids for 3 decades now. Literally no other reason.
Applesmack wrote:
Feb 12th, 2018 10:56 am
http://www.cbc.ca/news/canada/toronto/t ... -1.4529133

Toronto rent control protected rents are literally 47% lower than asking price rents. Since the vacancy rate is so low every landlord I know is simply assuming the 10% year over year growth, subtracting an assumed 1.5% year over year allowed increase and thus pricing the unit with an 8.5% year over year cost UPFRONT to take possession. Despite the insane prices vacancy rate is STILL sub 1%.

Renters I thought one of the 'advantages' of renting was flexibility? Are you willing to pay a 47% rent increase for this flexibility? I'm assuming that since the rent control scheme didn't bring affordable rents the next step is to seize private property and give it away to the poor Soviet style? That'll definitely have those builders pumping out new residences in no time!
How is paying it up front any different from paying it spread out? Either way the amount of money landlords have been asking from tenants has sharply increased. The government has simply removed the special exemption to the rent control law that landlords have enjoyed for the last 26 years and required them to fall in line with other landlords of older properties. Those that gouge people are just doing it up front now instead of hitting tenants with a 100% rent increase after the first year. The pattern of behavior hasn't changed, only the timing has.
Could HAVE, not could OF. What does 'could of' even mean?
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Oct 23, 2003
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papermoney wrote:
Feb 13th, 2018 12:28 pm
Have you looked at rent prices for GTA on craigslist and Kijiji? It is close to the rent prices on Vancouver. If you look at Quebec and BC suburbs rent costs, it is about 20% to 30% cheaper.

It could a number of factors including a lack of housing,high electric costs (specifically Ontario) or government regulations.
new build condos are 500-600k for a 1 bedroom.

if RE prices climb, so does rent. Thats a chain reaction. No amount of government controls will change that relationship.

doesnt help condo prices jumped 22% in the last few months either.
Deal Addict
Oct 6, 2015
1300 posts
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Rents are not increasing significantly in Toronto. But there is a torrent of brand new units coming onto the market which are luxury in nature, or have a lot of 'extras' included. Thus, the averages are skewed upwards.

People who rent exactly the same unit year over year are not experiencing significant increases, or really any increases at all.
The reason Ontario pays so much for its electricity is because Ontario Hydro built a bunch of nuclear plants they could pay for, and everyone has been kicking the bill down the road to their kids for 3 decades now. Literally no other reason.
Paying a lot of staff double their market value is also features prominently in OPG/Hydro One's (former Ontario Hydro's) operations. Some of the salaries in the sunshine lists are just outright kooky.
doesnt help condo prices jumped 22% in the last few months either.
Toronto condo prices for identical units have been pretty steady since 2013. Just because there's new luxury units coming onto the market doesn't mean the entire condo market has gone up 22% or whatever nonsense is being claimed.
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Feb 22, 2011
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burnt69 wrote:
Feb 13th, 2018 1:54 pm
Rents are not increasing significantly in Toronto. But there is a torrent of brand new units coming onto the market which are luxury in nature, or have a lot of 'extras' included. Thus, the averages are skewed upwards.

People who rent exactly the same unit year over year are not experiencing significant increases, or really any increases at all.



Paying a lot of staff double their market value is also features prominently in OPG/Hydro One's (former Ontario Hydro's) operations. Some of the salaries in the sunshine lists are just outright kooky.



Toronto condo prices for identical units have been pretty steady since 2013. Just because there's new luxury units coming onto the market doesn't mean the entire condo market has gone up 22% or whatever nonsense is being claimed.
Are you being serious? Rents are not increasing?
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Oct 6, 2015
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rjg4235 wrote:
Feb 13th, 2018 2:03 pm
Are you being serious? Rents are not increasing?
Absolutely. But there's a lot of brand new luxury units that are going into the 'averages', hence, the average rent is increasing, but individual rents are not.
Sr. Member
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Jan 5, 2003
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lol Mark to the rescue. Yes, rents peaked 5 years ago and have been dropping ever since. It's the rent mix that has changed. Face With Tears Of Joy
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Jul 8, 2017
174 posts
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NA
burnt69 wrote:
Feb 13th, 2018 2:05 pm
Absolutely. But there's a lot of brand new luxury units that are going into the 'averages', hence, the average rent is increasing, but individual rents are not.
So how much rent are those luxury units going for? Can you show us some listings to back up your claim? By the way one of my friend is paying $1800 for a 1 br at Don mills and Eglington and it is a 20 yr old building.

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