| by Kenneth Chase | 3 comments

The average cost of a one-bedroom rental in Toronto is now $2,300


The average cost to rent a
one-bedroom condo in Toronto is now 2,300 dollars a
month, and I wanna figure out how the heck that happened. Thanks so much for takin’ the time to watch this video today. My name is Tom Storey, I run
a real estate team in Toronto, and we do this on the ground
level every single day, so I’m hoping I can give
some valuable insight and comments on why I think
rental prices in Toronto have skyrocketed. So the report that came
out is by PadMapper, which is an extremely useful app, website, that people looking
to rent properties can go on. So PadMapper has collected all their data, and they’re now saying that
the average one bedroom in Toronto is about 2,300 dollars a month, and that is a 7.5 percent
increase year over year. And your average two bedroom
is just under 2,900 dollars. So rent being expensive
in Toronto I don’t think is a shock to anybody. I think anyone that’s rented
or tried to rent before or has been renting over a period of time has seen how prices have really
escalated over the years, and you can look at normal
things like immigration, population growth, inventory,
lack of new development, things like that, to why
rental prices have gone up, and a lot of people just say,
well it’s greedy landlords. But I wanna go over why I
think this current hike in rent that we’ve seen over the past basically three to five
years has happened. So quickly let’s look at the
report that PadMapper put out. So they’re showing here that based on all the Canadian cities,
Toronto for one bedroom condos is the most expensive at 2,300 dollars, followed closely by Vancouver at 2,200, and then it goes all the
way down to the top 23. If you look at two bedrooms, Vancouver is still the
most expensive, but Toronto is close behind, just under
2,900 dollars a month. So to understand why this has happened, we have to first go back to 2017. So the market in 2017,
the first four months, we saw prices go up over 26 percent. It was absolutely insane,
it was not healthy, and the liberal government came in and said enough is enough, we’re putting in the Fair Housing Act. So the Fair Housing Act
was a 16 point plan, but really the two main
things was form buyer attacks and rent control. So this is great news for
the tenant, well kind of. So on the surface, it means
that after the first year of your rental, you’re not
gonna get some shocking rent increase at the
end of that first year. But what also happened is that
there was a lot of developers that were coming to the
market with these new purpose-built rental buildings, which we haven’t seen
in Toronto in 30 years. So there was all this supply of new rental properties coming, but then as soon as rent control was announced, a lot of these projects
were either canceled or converted into condos
because the developers numbers no longer made sense under rent control. So when that happened, all
the supply that was gonna come to the market just
vanished just like that. And then for anybody that was
already renting a property, it really made no sense to
move unless you’re gonna buy. ‘Cause if you make a lateral
rental move, you’re just gonna pay more for the same space. So what happened is, less people moved, there’s less new inventory,
there’s less brand new product coming to the market,
so the starting prices which are not under rent control
went up every single year. And that’s what’s basically happened over the past few years. So obviously there’s not
one solution that’s gonna make everybody happy when it comes down to rent control in Toronto, but we really have to think about this. Right now the reason
why prices are going up every single year is
strictly based on inventory, it’s supply and demand. And based on the population
growth that our city has seen over time, we need more
inventory to come to the market. I hope you found this
information valuable. If you have any questions,
please put them below, please don’t forget to
subscribe to our channel, and remember, home is
where your Storey begins. (relaxing music)

3 Comments

Dave B Videos

Aug 8, 2019, 3:32 am Reply

Great video thank you. I liked and subscribed. I also downloaded the PadMapper App.

Harlan Michael

Aug 8, 2019, 3:58 am Reply

Great explanation on rent control.

Tom Storey

Aug 8, 2019, 3:18 pm Reply

What do you all think about rent control? Would love to hear your feedback!

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