Population keep rising resulting to house and condo demand
The Firm Capital report cited RBC Economics data that said the Toronto census metropolitan area (CMA) needs 9,100 more vacant units to reach a “healthy” vacancy level of three per cent.
The RBC report also said the Toronto CMA needs 22,000 new rental apartments and rented condominium apartments per year to satisfy demand between 2019 and 2023.
“Even if we anticipate that 70 per cent of all new condos are rented, and we have 4,000 new purpose-built rental apartments in the GTA every year, we still wouldn’t hit that 22,000-unit mark,” Myers told RENX.
“We’re not even hitting the rented units we need, so we’re not coming close to eating into that 9,100-unit shortfall in the marketplace.”
This means rents will continue to rise, according to Myers, even though purpose-built rental apartment construction is on the rise and 2021 is expected to be a big year for condo completions in the Greater Toronto Area.