What is Driving the Purpose-Built Rental Apartment Boom?
Some of the biggest real estate owners in Canada are showing more and more interest in the development of new rental apartment buildings in the Greater Toronto Area. This purpose-built rental apartment boom will change the way renters live and where real estate owners will invest their money. Read on to learn more about what is driving this purpose-built rental apartment boom in Toronto:
The Toronto-based condominium research firm Urbanation has indicated that the current development pipeline for rental units in Toronto is up 75% compared to the last ten years. The CMHC noted that the construction of new rental apartments in Ontario is at a 20-year high. And in 2015, two institutional buyers actually made offers to condo developers to purchase entire buildings. The boom is real!
A perfect storm has caused this apartment boom: financing for new construction is inexpensive because of low interest rates, rental demands are skyrocketing, the condo market is weakening and institutional real estate owners are looking for safe places to invest their money. Urbanation notes that the demand for apartment construction is being driven by demand from millennials who are not interested in home ownership. Prices in Toronto for single family homes have reached record levels recently. This is driving potential first-time home buyers away from home ownership and leading them towards renting.
What it means for you
Now is as good a time as any to begin investing in a rental apartment in the Greater Toronto Area. The interest rates have remained low for some time now, but they could begin to bounce back before the end of the year. It’s important to remember that you shouldn’t jump into investing in real estate without the support of a well-established property management company like Simplified Rentals.
Simplified Rentals’ staff members are highly skilled and professionally trained. Our team is more than capable of managing or advising you on all facets of your real estate investments. We manage all types of real estate, from single family home rentals and triplexes to condo developments and apartment complexes. We have extensive experience with all aspects of new development projects, renovation projects, and redevelopment.
You don’t want to miss the boat. Contact Simplified Rentals today to make your move and take advantage of the rental apartment boom in Toronto.