Unless you’ve been living under a rock, you’ve probably heard that the Toronto real estate market has been booming for a few years. Everyone from real estate agents, to contractors, to real estate CRM companies have been benefiting from the increased interest. Let’s take a look at some of the reasons behind the craziness that is Toronto real estate.
1. Low vacancy rates
It’s no secret that the housing market consists of both real estate and rentals, and they’re both connected. Toronto has had a supply and demand problem when it comes to affordable rental housing, and it’s led some people to consider whether they can afford to buy.
When the average 1 bedroom apartment soars to over $2000 a month, your typical renter is going to wonder if that money could be put to better use. This increased interest in real estate, particularly in downtown core condominiums, has put increased pressure on the real estate market in Toronto.
2. International buyers
Toronto is a very attractive city for wealthy overseas buyers. We’re considered one of the most globalized cities in the world, and it’s a great way for them to invest their money.
Oftentimes, a foreign buyer will purchase a home or condo and hire somebody remotely to rent it out, either on AirBnB or to a monthly tenant. Since the home is appreciating in value, and the rent also provides a steady stream of income, it’s a win-win situation for someone with the upfront cash to buy the place outright.
3. Toronto is a desirable city to live in.
Toronto is the biggest city in Canada, and the fourth-largest city in North America. Like the other top cities (New York City and Los Angeles), real estate here has boomed. Toronto is also considered one of the most globalized cities in the world, and many large companies have offices in our city.
Another factor playing into Toronto’s desirability is the lack of other cosmopolitan options for young people. If a young Canadian wants to live in a world-class city, their options are basically Toronto, Montreal, and Vancouver. This means most Ontarians who want to live in a big city will be making the move to the six.
4. Toronto has a lot of immigrants.
Toronto has always been a highly multicultural city, and this continues to be the case. When one member of a family immigrates to Canada, the others often wish to follow suit so they can be together.
There have also been a number of refugees accepted to immigrate to Canada, and Toronto is one of the most desirable places to house them since we have so many amenities and services. This puts an increased demand on rentals and real estate, and has contributed to the housing market boom we’re seeing in 2018.
5. Our suburbs are sprawling.
Even Toronto’s suburbs are profiting from the housing market boom, including Ajax, Oshawa, Oakville, Burlington, Aurora, and Vaughan. While there is a small price reduction for buying in these locations, it often means high housing prices combined with a long commute. This has many Torontonians looking for affordable condos in the downtown core.