If you’re looking for a place to rent in Toronto, and aren’t having much luck finding one, you’re not alone.
According to Canada Mortgage and Housing Corporation’s (CMHC) 2017 Rental Market Survey, Toronto has a 1% vacancy rate for rental properties, which is the lowest level its reached in 16 years.
The CMHC attributes this to the rising costs of home ownership, which has more Torontonians looking for, and remaining in, rental units.
And with the low vacancy rate, Toronto saw one of the largest rent increases in the country since last year when it comes to purpose-built rentals, averaging a hike of 4.2%. Toronto also has the second highest rental monthly average in the country, just behind Vancouver, with a two-bedroom reportedly going for $1404, according to the CMHC.
Purpose-built rentals are described as occupied “units in privately initiated, purpose-built rental structures of three units or more.”
So while the numbers for purpose-built rentals look low in Toronto, CMHC also covered condos offered for rent on the secondary rental market. Vacancy for condo rentals also declined from 1.9% in October 2016 to 1.6% in October 2017, and the highest average two bedroom condominium rental in Canada was in Toronto at $2,301, followed by Vancouver $1,874.
PadMapper‘s monthly rental analysis also shows that rentals for two bedrooms are easily above $2000 on a regular basis. In November, two bedrooms were listed at an average of $2,440, which is up 14.6% since this time last year.
Across the country, the CMHC reports a national vacancy rate of 3% as of October 2017, which is down from 3.7% a year ago.
“Nationally, increased demand for purpose-built rental apartment units outpaced growth in supply, leading to a decline in the vacancy rate and a reversal of the trend we’ve seen over the last two years,” said Gustavo Durango, Senior Market Analyst at CMHC.
“Demand for purpose-built rental apartments can be attributed to historically high levels of positive net international migration, improving employment conditions for younger households and the on-going aging of the population.”
For those wondering, the lowest purpose-built rentals are all in Quebec, specifically Trois-Rivières ($594), Saguenay ($605) and Sherbrooke ($631). As for condos, lowest rents were in London ($996), Québec ($1,052) and Gatineau ($1,061).