Policymakers need to make it more attractive for real estate investors to enter and remain in the rental apartment market.
That’s the view of Toronto Real Estate Board CEO John DiMichele who points a recent Ipsos poll suggesting that almost a quarter of rental apartment owners are very likely to list their property for sale this year.
That would exacerbate the already-tight market which is making choice of available homes difficult and pressuring affordability.
“With vacancy rates hovering in the one per cent range and average rents increasing in the high single digits, it is clear that signing a lease for a rental unit is not an easy proposition in the GTA. While some rent control provisions have been relaxed by the new provincial government, policy makers need to look at further initiatives to encourage rather than discourage investment in rental apartments,” said DiMichele.
Rent rises above inflation
Average rents for apartments leased through TREB’s MLS in the first two months of 2019 have increased by well above inflation.
The average one-bedroom rent was up by 8.1% to $2,145. The average two-bedroom rent was up by 7.4% to $2,810.