Stomp Realty Inc. Weighs in On Spike in Rental Development in Toronto

Stomp Realty comments on why Toronto’s rental development market is showing 25-year highs.

Toronto, Canada – October 27, 2015 /MarketersMedia/ —

Stomp Realty Inc. (www.StomprRealty.com), a full-service, boutique-style realty brokerage, is weighing in on the extreme spike in Toronto rental development.

With a housing market that’s been booming for over a decade now and a rapid condo development throughout the downtown core, those looking to become homeowners within Toronto have been forced to pay a premium—and sometimes a bit more than that—if they hope to call Toronto their home. In reaction to this, developers are taking advantage of the desire to live within the city and revitalizing a stagnant, almost nonexistent rental market, taking the development of rental units to a 25-year high. (Source: Pigg, S., “GTA apartment construction hits 25-year high,” The Toronto Star, October 15, 2015; http://www.thestar.com/business/2015/10/15/gta-apartment-construction-hits-25-year-high.html.)

“People want to live in downtown Toronto; it’s that simple,” says Erica Smith, Broker of Record at Stomp Realty Inc. “Some of the homes are too expensive for many first-time home buyers, so developers are seeing opportunity in the rental market. There is a real demand in that market.”

Figures from Urbanation, a rental market research company, put the rental development numbers at 6,523, which are the highest figures since the 1990s. Unsurprisingly, 75% of those rental apartments are within 15 minutes of a subway station.

Renting is a sound option for many different demographics of people, including younger Millennials who just aren’t necessarily renting because they can’t buy, but because they want to experience the lifestyle that downtown Toronto offers.

“In addition to some people renting because they’re possibly priced out of the house market there are also younger 20-somethings renting because they’re anxious for a new experience,” Smith explains. “Toronto is an amazing city that has so much to offer and Millennials want a taste of that before they commit to a mortgage.”

Even as 21,000 more condos are expected to hit the market in Toronto this year, it’s expected that approximately one third of those will be made available for rent by the owner. The average price for a 743-square-foot apartment in Toronto is around $1,850 per month.

“People are rooming up or, as older generations retire, they are selling their homes and deciding to rent instead,” Smith concludes. “Either way, these rental units are pretty much filled up, with vacancy rates below two percent, according to the Urbanation numbers.”

In addition to helping Toronto residents buy and sell homes, Stomp Realty Inc. also caters to those looking to rent units. Visit www.StomprRealty.com for more information on how they can help find a rental unit in Toronto.

For more information about us, please visit http://www.stomprealty.com/

Contact Info:
Name: Joy Paterson
Organization: Stomp Realty Inc., Brokerage
Address: 163 Sterling Road, Unit #10 Toronto, ON M6K 2B2
Phone: 416-366-3033

Source: http://marketersmedia.com/stomp-realty-inc-weighs-in-on-spike-in-rental-development-in-toronto/95123

Release ID: 95123