Bidding wars and soaring prices: Toronto renters face a ‘perfect storm’ in tight market

Tired of being outbid by other renters during his apartment hunt, the 22-year-old newcomer to Toronto gave in and offered $300 over the asking price on a two-bedroom rental unit.

“We hit the peak of the rental market with students coming back, more people moving to Canada, rate hikes — it was just the perfect storm,” Radzhapov said.. But in recent years, the bulk of the attention has been on the housing market. Now, as home sales cool off, the competition is heating up for renters.

The average time units stayed on the market fell to a record low of nine days, and inventory remained at a record low of less than three months, signalling “further upward pressure on rents in the near term” the report said.In July, Canadian rents increased 4.9 per cent compared to the same month last year, following a 4.3 per cent year-over-year increase in June 2022. Faster rental price growth was driven largely by acceleration in Ontario, at 6.4 per cent, and Alberta, at 3.

Toronto real estate agent Samantha Tyrrell said some clients are regularly being outbid by other applicants who are putting down six months to a year of rent up front. “It’s disheartening for people who are just trying to find a place to live,” said Tyrrell. “I have clients who have put offers on 12 places and we’ve lost them all.”

And the competition is hitting some especially hard. Newcomers to Canada and students are at a severe disadvantage, Lai said, as they may be searching for jobs or may not have Canadian credit. Providing a comprehensive package including all supporting documents – credit score, employment letter, rental application and landlord references — is imperative for prospective renters to be taken seriously.

They R onto something tt 100s of 1000s hv done already over last 10-15 yrs, not only now. Got the hell out of this evolving hell hole into unlivable hell hole vey soon. This vast country has places in interior where you cd hv NORMAL lives for next 50-75 yrs. After it's over 4 all

All our politicians are failures. Many are landlords.

Good thing Trudeau imports over 1.5MILLION people a year between immigration, 4N students, TFWs, & the parents & grandparents of immigrants, not to mention the 9MILLION super visa holders. It's not like our healthcare system is collapsing & housing is unaffordable or anything.

Keep the immigration flood gates open. We need more money launderers and foreign students to prop up our RE prices.

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Despite cooling market, detached homes still in high demand in some GTA pockets: reportWhile successive interest rate hikes and broader global uncertainties have cooled the housing market, the demand for properties in some sought-after neighbourhoods in the Greater Toronto and Vancouver areas continues to hold steady and even increase, according to a new report. Poll: Will home prices fall by 50% If there is high demand on detached house in some areas, for sure house prices in these areas will not drop sharply but decline slowly, house price will take years to go back where it was. But it's good for young generation. As long as immigration/refugees keep coming to big cities in high numbers, it will never come down. The government needs to focus on its own citizens.
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