The Only Reason Rent Prices are down in Toronto is because there are so many 1 BEDROOM apartments available, the supposed Condo Boom exposed – January 15, 2021,

Rental prices in Toronto are down, but are they really? or are the prices of 1 Bedrooms down? The charts point to the price of 1 bedroom apartments decreasing the most, and they could potentially drop down even further depending on what the Federal government does with immigration. One of the reasons for the steep decrease in rents for a 1 bedrooms is because of all the condos being built, which are often bought by people looking for a rental property and looking for a tenant to offset their mortgage and strata fees, while the value of the condo climbs in price.

 

Developers have noticed the numbers and they tend to make more money when building condos with an abundance of 1 bedroom apartments, there’s a lot on the market and not all of the stock on the market is posted online, I know several people who purchased and don’t list their apartments publically. The one-bedroom condos you’ll see online are also becoming too numerous to count and competition is getting fierce, because especially in this climate, finding a good tenant is getting harder and harder.

When you own a property even if you’re struggling to make mortgage payments, it’s often better to leave the property empty rather than allow a tenant in, that might decide to avoid paying you rent. So, what’s happening especially with 1 bedrooms is that more landlords are getting more desperate, I wouldn’t say desperate enough at this point, but desperate nonetheless.

I bring this up, because raising interest rates could become problematic and one of the reasons the central banks might be forced to continuously raise rates, is because of consumer price inflation, due in large part because of additional Federal, provincial and municipal regulations on the economy. Regulations equate to increased costs for producers, business people etc, that can’t be lowered, because as an example “a carbon tax” exists, or covid regulations, which equate to as an example masks and certain cleaning supplies, higher gas prices, etc, being a permanently higher fixed expense for business people.

Now, what this equates to for housing, is that fewer people will be able to afford these higher rents, it’s already happened in New York City, there’s been an exodus from New York City and a lot of other expensive U.S States. I also read that Ontario saw a population DECLINE in 2021, even if immigration creates demand, we’re not talking about the same quality immigrants Canada enjoyed in previous years, a lot of the new immigrants have been an economic strain on the Canadian economy.

So this one-bedroom problem is something you might want to look into!

Interesting times ahead!