Available Rental Housing in Toronto Just Hit a 16-Year Low

Rising housing costs and the short-term rental market contribute to record low

The overall vacancy rate for rentals in the Greater Toronto Area decreased to 1.1 per cent in 2017, which represents a 16-year low in available rental housing for the city. The decrease in available units, at least in part, can be attributed to rising housing prices. Fewer people are leaving their rentals and/or investment property owners are turning to the short-term AirBnB rental market.

The Canadian Mortgage and Housing Corporation released its fall reports this week, which can be downloaded here. The report indicated that the average rental price in the GTA is $1,296 per month, which is a 4.5 per cent hike from last year’s numbers.

The vacancy rate for the province of Ontario is listed as 1.6 per cent.

Condos, for the second year in a row, stand as the number one source for new rentals in Toronto. Bachelor and one-bedroom apartments shaded slightly higher with 1.2 per cent vacancy rates. Two and three-bedroom units were both reported at rates of 1.0 per cent.

The city is examining stricter regulations on short-term rentals, which could open up more long-term rental options and drastically alter these numbers moving forward.