The housing market is hot, but the rental market could quickly catch up as economy reopens

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Higher demand for rental housing in next few months expected to put pressure on rents if new listings can\u0027t keep up

Urban economic theory suggests that housing valuations are essentially the sum of future discounted cash flows . The reality in large housing markets presents a more nuanced picture since housing prices took off to unprecedented heights, while rents primarily declined.

Some would argue that year-over-year comparisons are misleading, given the lockdown restrictions imposed in March 2020. But a comparison with the first quarter of 2019 presents an almost identical picture. Almost twice as many leases were recorded in the first quarter this year than during the first quarter of 2019.

Demand and supply factors might be at play here. The spike in leases suggests a substantial increase in demand, while a relatively proportionate and sustained increase in supply has helped ease the pressure in rental markets. The increase in rental listings has so far helped ease pressure on vacancy rates, which almost doubled across all regions in the GTA during the first quarter of 2021 compared to the first quarter of 2020. For example, vacancy rates in the City of Toronto increased to 1.7 per cent in the first quarter, from a low of 0.9 per cent a year earlier. Similarly, the vacancy rate doubled in the Peel region to hit 0.8 per cent.

 

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mike harris, ToriesOfOntario, GritsofOntario, Dalton McGuinty, Kathleen Wynne, and now DougFord with his Ontario Tories have done a heinous job for Ontario in 26+ years. new home owners are shafted in many ways. property tax land transfer etc!!

landlords are parasites

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