Developer says demand for rentals in Toronto is soaring
Rental apartments are the next boom in Toronto’s housing market according to developers and investment funds. As prices have increased and mortgage regulations have tightened there has been an increased demand for rental properties and investors are cashing in. Apartment real estate investment trusts are outperforming other REITs on the Toronto Stock Exchange and Ugo Bizzarri managing director of portfolio management and investments of Timbercreek says: “There’s a huge demand for rental.” He told the Financial Post that developers are starting to build rental property “for the first time in 40 years.” Research firm Urbanation reveals that there are 21 planned or under-construction rental apartment developments in the Toronto area but with vacancy rates lower than 2 per cent the building still may not keep up with demand. Meanwhile RealNet Canada says that sale prices of condos have levelled off since their peak in 2011, giving developers more incentive to build rentals where the yield can be higher.