The effect of a red-hot housing market is having a wide-reaching effect in Toronto, where more millennials are delaying homeownership as prices continue to rise.
A Bank of Montreal report released Tuesday shows while 60% of millennials surveyed are tired of paying rent, about 70% are willing to delay homeownership until they can afford what they really want.
In the meantime, the rental market in Toronto is becoming increasingly competitive.
According to the Toronto Real Estate Board, the average condo rentals in Toronto for the first quarter of 2016 were:
Bachelor, $1,376 – a 3.8% year-over-year increase One-bedroom, $1,662 – a 4.8% year-over-year increase Two-bedroom, $2, 375 – a 8.9% year-over-year increase Three-bedroom, $2,789 – a 0.5% year-over-year increase
"You're seeing reports now of Toronto's rental prices are at a record high. That points to more people wanting to rent to put off the purchasing decision," Sameh Elrefaei, managing director of personal lending products at BMO Bank of Montreal, told CTVNews.ca.
A report from Urbanation released this month showed the average condo in Toronto increased 6.8% year-over-year while the vacancy rate has fallen to 0.5%.
The report also found that in the condo rental market:
The average time on market fell from 27 to 23 days The number of rentals that leased for higher than asking rents shot up by 59% to 417 units The number of units leased for over $3,000 per month almost doubled from a year ago to 276 units
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at email@example.com
“Toronto’s Condo Authority”