Steep jump in Toronto rents sends apartment hunters to the suburbs

Go ahead, just try to rent an apartment in Toronto.

The feat is getting even harder, with supply tight and prices showing no sign of retreating. The vacancy rate in the fourth quarter was among the lowest ever, at 0.3 per cent, according to Urbanation Inc. The average monthly rent for a condominium rose by 9.1 per cent to C$2,166 (US$1,730) from a year earlier. 

That is the second-largest increase since 2010, when Urbanation began tracking the number, after a record year on year jump of 12 per cent in the third quarter. Downtown rents surged even more, sending apartment hunters out to the suburbs.

“This has continued to raise the confidence of developers to add more units to the pipeline, a trend that will need to continue in order to meet future housing needs,” Shaun Hildebrand, senior vice-president, said in a statement. Rental development climbed to the highest level in over 25 years, ending 2017 at 7,184 units under construction.

Ricky Ferguson, 26, is feeling the squeeze. He has been looking for a rental in Toronto between C$1,000 and C$1,300 with his girlfriend, 23, since October. 

“When we first started searching we were in a panic, because my girlfriend was in a situation where her mother was going to kick her out of the house,” he said, adding that they’ve been allowed to stay until they find a place of their own. “My credit score and report are more or less flawless.”