Rental demand in Toronto has reached an all-time high following Ontario’s new Fair Housing plan, according to a report by Urbanation.
The report states that during the second quarter of 2017, condo lease transactions rose to a new high, rent growth re-accelerated to a double-digit pace, and vacancies dropped to almost zero.
This all happened around the same time that the Ontario government announced the Fair Housing Plan.
Lease transactions and rents increase
Urbanation reports that 8,328 condos apartments were leased through the MLS in the GTA during the second quarter of 2017. This was 12% higher than the previous high of 8,202 units set in 2015.
“Activity was partly driven higher by an increase in new supply, as total listings rose 8% annually in the quarter due to higher condo apartment completions,” said Urbanation in a release.
Rental costs also saw a significant increase. According to the report, the average rent in Toronto increased to $2,073, surpassing the average of $2,000.
In the first quarter of 2017, the annual rent growth was at 8.3%. Meanwhile the second quarter increased to 10.7%.
The Fair Housing Plan was implemented in 2017 to help more people find affordable homes. Part of the plan included the introduction of Ontario’s Non-Resident Speculation Tax (NRST), also known as the foreign buyers’ tax.