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.