The search for rental properties, particularly in Ontario, is becoming more aggressive as the number of people looking to live in the province continues to outpace housing supply.
Economists say this is largely due to a change in the housing marketas affordability poses a continuing challenge for many potential Toronto-area home buyers.
“For 50 years, we’ve been trending toward home ownership, but now that average and even upper-income workers are being priced out of home ownership, they are staying in rental housing for far longer,” said Jill Atkey, acting chief executive and managing director of the BC Non-Profit Housing Association.
That means more people are on the hunt for affordable rental properties, including millennials looking for their first place to buy,and baby boomers looking to downsize.
The average rent for an apartment in Ontario in 2018 was $1,673, a 7% increase compared to the previous year, when the average rent was $1,569. Studio apartments in Ontario rent for $727 a month, while 1-bedroom apartments are asking on average $1,443 a month andthe average rent for a 2-bedroom apartment is $1,772.
Benjamin Tal, deputy chief economist at CIBC Capital Markets, says that there are many other tactics that can be instituted, like creating a rental solution for the housing market in order to relieve some of the pressure on prices.
“We have to allow for a rental market,” he said, “At this point, in terms of rental control, we don’t have much of a supply, because there is no purpose-built. Not just condos, but purpose-built apartments — so we need to change the way that we think about the rental solution,” Tal explains.
The good news is there are organizations in the area that are working to provide solutions. CLV Group, a property management company, offers over 10,000 apartments and townhomes in Ontario and Quebec in more than 18 communities.
For example, by constructing more purpose-built apartments and buildings designated for renters as opposed to construction of dwellings designated for purchase, it could help alleviate the immediate need for supply in the market.
If current trends are any indication, it could be a few more years before the housing crisis improves. It’s not an issue that can be resolved overnight, but hopefully one that can be resolved over time.
