Impacts of Homeownership Barriers in Vancouver and Toronto

The Rental Market Report reveals high rental demand in Toronto and Vancouver. High rental demand also reflects lower affordability of homeownership in these cities. Some factors driving rental demand in Canada in general include:

• High immigration
• Economic conditions that support the formation of new households

High barriers to first-time homeownership have encouraged rental demand in Toronto and Vancouver. This places additional downward pressure on already-low vacancy rates and upward pressure on rents. This underscores the need for increased rental supply to ensure people in Canada have access to affordable housing.

Barriers to first-time homeownership remain high in Toronto and Vancouver

In Toronto, the Census Metropolitan Area (CMA) report notes, “…prices of multiple-family dwellings (such as condominium apartments and townhouses), which are typically more popular among first-time homebuyers, have shown stronger price growth than other housing types over the past 12 months, thus pushing demand towards the rental market…”

In Vancouver, the Census Metropolitan Area (CMA) report states, “…entry-level home prices continue to remain high relative to local incomes, resulting in many potential home buyers facing financial barriers to entry into homeownership. Some potential homebuyers may, therefore, choose to rent longer term, contributing to rental demand…”

While the supply of purpose-built rental units has been picking up in Toronto and Vancouver in recent years, demand growth has been stronger, partly due to high homeownership costs, which continues to keep vacancy rates low and rents increasing in these two cities.

Download the Rental Market Reports for more details on secondary rental condominium statistics

The Rental Market Survey gathers data and analysis for both the primary and purpose-built rental market as well as the secondary rental market. The primary rental market consists of units in privately initiated, purpose-built rental structures of three units or more. The secondary rental market covers condominium apartments offered for rent.

National Housing Strategy’s goal is to create affordable housing

As a fundamental component of the National Housing Strategy, CMHC offers the Rental Construction Financing Initiative (RCFI) and the Affordable Housing Innovation Fund (AHIF). Both programs strive to improve both the affordability through the increased availability of rental units. If you are a Business, Municipality or Government official looking for funding, these initiatives can not only help improve Canada's rental housing supply, but also prove to be profitable.

Related Information

• A Place to Call Home
• Canada’s Vacancy Rates Declines
• Average Rent in Canada Increases
• Rental Market Report Data Tables