Toronto Rental Condos And Apartments | Affordable Housing

Recently, as you might know, the Ontario provincial government have big plans to change the landscape of Toronto’s real estate market.

A huge concern was to create affordable housing for Ontario residents being priced out of the rental market. One of the proposed measures was rent control.

We know, that this is an issue for many analysts and market players. While the rental market is expanding rapidly in Toronto, actual affordable housing is scarce. Real apartment buildings – not condos for rent in Toronto are becoming more rare with each passing year.

The question is really, is a subsidy for rental housing enough to inspire builders to produce rental units?

Let’s first look at why the rental market is growing so quickly:

Why Are Toronto Rentals Of Condos And Apartments Becoming So Popular:

1. Young people are being priced out of the market. The prices of owning condos and homes in the city of Toronto have increased so rapidly that the incomes of young people are insufficient for ownership. This doesn’t apply to everyone. It doesn’t help that it has becoming more difficult for average people to secure a mortgage.
2. Young people choose not to take on the burden of large payments, even if they can swing the amounts necessary. Renting is a fixed cost that they factor into their lifestyle. When it comes down to being able to abandon high payments, they can leave on a whim. This way, they aren’t tied to a property.
3. Older people are tending to move to rentals after cashing out their properties. Perhaps this is the least common circumstance, but it sure is a factor. With property prices near their all-time-high, you see a lot of more established adults opting for rentals. They now have a substantial windfall of cash and they are players in a rental market!

These young people are competing with lifetime renters. Because we have so many people that are stuck in rentals or choosing the renter lifestyle, there is increased competition. You know, as demand goes up, the prices are too driven up. You now have middle-class young professionals competing for rentals with perhaps not so high earning adults! The conflict is clear.

The Re-Birth Of Affordable Housing In Toronto

However, this is not ALL bad. Toronto is on track to create 2000 designated rental units! They have one silver lining on the municipal end of Ontario’s grand plan. The key is to build more or inspire builders to create more rentals!

Of course, there is a strong incentive of guaranteed money in the pre-construction phase for condos, but if the government allocates money specifically for the end of creating more rental space for those who need it, we can really go somewhere.

There is a happy medium between profit and social responsibility which is hard to manage. It’s certainly worthwhile to serve the greater population of Toronto. I think good robust social investment in Toronto is an important part of a healthy future for a market. At the same time, putting numbers aside is a large part of helping those communities in need.

Granted, it’s hard to find a happy medium between private interests and the greater good for Toronto. For those in need, I predict, that there might be an increased need for intervention in some capacity from government bodies. New developments are always a way to accommodate those that can afford it. We’re talking Toronto condos for rent can continue to grow in price.

Toronto Rental Condos And Increasing Density

In the long run, a better Toronto for everyone might mean density backed by a bit of government initiative. That’s important. When crafting policy, they seem to have the best interests of their constituents at heart, but that’s just not enough.

We want a Toronto for everyone. Sometimes, we need planning from building experts. In the way of construction of dedicated rental units, hopefully more will be underway, but we will have to wait and see. Sometimes, incentives might have to be increased or revised to draw in people to bite.

We want some kind of growth that is long term and sustainable. With or without an increase in rentals, prices will continue to go up and the population will continue to grow. That said, the question is: will people be left behind. As far as the numbers go: it looks like people continue to adapt and stay resilient in the market. As prices continue to rise disproportionately against average incomes we will have to wait to see what the future holds.

If you have any questions about finding Toronto rental condos or affordable housing in the city of Toronto: feel free to get in touch. I’m happy to field any questions, at any budget. These pieces are more of an educational method for consumers in Toronto and they serve as a way of getting Ontario residents into homes that work for them!