As COVID-19 shook the nation, condo prices in downtown Toronto started to drop since city dwellers escaped from the density of downtown to small homes in the countryside around the area. Now that the pandemic is starting to loosen its grip on Canada, the condo prices are going back up.
New data from Urbanation says that a ton of renters are starting to filter back into the city, and they’re looking for reduced prices after a year of people leaving Toronto in favour of working from home. The report states that in Q1 2021, the vacancy rate in the city was 6.5 percent, but now that number has dropped down to 5.2 percent.
— Urbanation Inc. (@Urbanation) July 19, 2021
That being said, last year, in the early stages of the pandemic, that number was at 2.7 percent.
What should be noted, though, is that during the pandemic, another 1,242 rental/condo units have been built in the city, so this drop in vacancy rates is a bit larger than it appears.
Another interesting fact from the report is that studio apartments are experiencing the most demand, likely because renters are still a bit budget conscious after the weird year they’ve just been through, according to the report.
All of this is good news if you’re looking for a place to rent in the short term. But long term, if this demand keeps up, it’s putting Toronto back on track to continue getting more expensive to rent in.