While Toronto’s technology sector ranks only as fourth-largest on the continent, it’s the fastest growing, according to a BMO Capital Markets report.
The Greater Toronto Area’s tech sector has grown 50% in the last five years with nary a sign of it slowing down. Moreover, the report notes that it’s helping buoy the region’s economy, which is robust and slated for more growth.
“This strength flows from a number of factors—most particularly the technology sector,” read the report. “Toronto ranks as North America’s fourth-largest technology talent market; it has over 241,000 technology workers and is currently outpacing other North American markets—including the likes of the San Francisco Bay Area, Seattle and Washington, DC—in terms of adding jobs in the sector. We don’t believe the sector has peaked; we expect it will continue to grow.”
The report goes on to explain that Canada’s largest metropolitan region is replete with high-quality and well-educated talent working in the technology sector and that they’re the impetus for companies, both national and international, setting up offices in the area.
“Which in turn will continue to strengthen the economy,” continued the report.
Christopher Alexander, REMAX Integra’s vice president and regional director for Ontario-Atlantic Region, says the report’s findings aren’t surprising because Toronto real estate is still inexpensive compared to the San Francisco Bay area, and in tandem with the city’s overall stability, companies will continue flocking there.
“It is Silicon Valley North,” said Alexander. “Canada is also viewed as one of the best countries in the world to live and big businesses are investing here. They see our banks as very solid and they see a good opportunity to have a great home base for their operations that isn’t as expensive as Silicon Valley.”
The BMO Capital Markets report echoes another report from Marcus & Millichap that noted the GTA has cemented its reputation as a leading North American tech hub. However, while the city will continue attracting top talent, barriers to homeownership could impel more of them to rent.
“Microsoft, Intel, Uber and other companies have plans to increase operations in the city and bring on new workers,” read Marcus & Millichap’s 2019 Multifamily Investment Forecast Report. “Amid its solid reputation as a top innovator in tech and a mature ecosystem that supports the industry, the GTA will attract young professionals in greater numbers this year. Many new residents choose to rent, not only due to barriers to homeownership, but for greater mobility and to be near local employers, restaurants and nightlife.”