There was a time when it was the dream of most young professionals, and particularly young marrieds, that buying/owning a home was the ultimate goal and achieving that goal was basically a dream come true. However, in recent months, that dream seems to be shifting a bit especially in the Greater Toronto Area. According to Real Estate Agents and Property management companies, Toronto is experiencing a "rental renaissance."
A recent article in The Globe and Mail highlighted the fact that apartment construction has hit a 25-year high in Toronto. By the third quarter of 2015 there were 26 apartment buildings under construction offering more than 6,500 rentals. Developers are proposing an additional 10,000 units, most of which will be concentrated in the city core area but including a few outer suburbs as well. Single-family homes are also in high demand and while they may be a bit harder to find in the city core area, there are many to be found in Toronto's surrounding suburbs.
One of the primary trends that is driving this increase in rentals is housing prices that are soaring so high it is pushing most people out of the market completely. Because fewer people are buying homes, they are living in their rental properties longer. Toronto is Canada's largest city and the dense population within the city's core as well as the surrounding suburbs contribute to the high demand for rentals.
However, another interesting trend that seems to be a factor in the rental renaissance is the Millennial generation. Like their parent's generation of baby-boomers, millennials are proving to be a large population group that will shape trends for many years to come. Older millennials, those in their late twenties to early thirties, are gravitating to larger cities such as Toronto and Vancouver and opting to live closer to their work. Because of their desire to stay close to work, they are willing to pay hefty rental fees, to the tune of about $1800 per month, in order to build their lives in the city. Being part of a community where work and life can easily mix seems to be more important to millennials than home ownership and many millennials don't seem to buy into the idea that owning a home is an investment. Many see it as heavy debt they'd rather avoid. Developers in the GTA anticipate that these trends will continue to impact the rental market in Toronto and will continue to build and develop rental communities that will meet the needs and demands of this new generation.
Residential Property Management Companies have also seen steady growth with the strength of the rental market in the GTA. They are a great resource for home owners looking to rent their properties as well as people who are looking to rent in this competitive market.