Tag Archives: rent

Toronto Star Article: “Toronto’s Rents Were Supposed To Drop”

Recently the Toronto Star published (on March 21, 2021) a long article examining vacancy rates and average rents across the city of Toronto. You can read the article via the link below (the article might be behind a paywall). https://www.thestar.com/news/gta/2021/03/20/toronto-rents-were-supposed-to-drop-as-people-fled-the-city-during-covid-19-the-data-tells-a-much-different-story.html This article uses data gathered by CMHC and explains that in most neighbourhoods in Toronto average rents increased from 2019… Read more »

Question: How Fast Will New Rentals Be Absorbed?

To start, let’s state the obvious: the easiest way to ensure your new rental building leases quickly and starts generating revenues as soon as possible is to ask rents which are affordable or ‘attainable’. But few, if any, developers have the luxury of asking rents that the bulk of renters can afford. The reality is that every developer, given development… Read more »

Question: What Rents Can New Rentals Get?

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Choosing asking rents for new purpose-built rentals is one of the key tasks which developers need to get right if they want their new rentals to be successful, both in terms of being absorbed into the housing supply in a timely manner, and in terms of generating the highest possible rent revenues. If your rents are too low your building… Read more »

Three Questions Developers Always Ask

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In my experience as a consultant developers with a new rental building either in the planning stages or under construction almost always ask three important questions. Their first question is almost always “What rents can we get?” Rents make up the bulk of revenues and if rents aren’t high enough then the proposed project might not make sense financially. The… Read more »

Rent Growth: Old vs New Purpose-Built Rentals

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Looking back, it turns out I haven’t talked about rent growth in any of my posts, so that’s what this post is going to be about. Every year CMHC reports average rents for purpose-built rentals for most major cities in Ontario. By looking at historical CMHC data and doing a few simple calculations we can compare rent growth over time… Read more »

Update: How Is Ontario’s Rental Housing Industry Weathering The Pandemic Downturn?

Back on May 5th I wrote a post in which I speculated about the short, medium, and long term affects of the pandemic on Ontario’s rental housing industry. Do I stand by my predictions? Do I think something else might happen? Generally speaking, I stand by what I wrote… mostly. I think my short-term predictions were fairly sound, even if… Read more »

How Can Renters Find Rentals?

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Here’s my guide to finding rentals for prospective renters. Probably the first thing prospective renters are going to do to find an apartment is a Google search. I’ve been using Google searches and online listing services as a market surveyor and mystery shopper for over 15 years to hunt for rental buildings. These days I don’t consider Google searches much… Read more »

How is Ontario’s Rental Housing Industry Weathering the Pandemic Downturn?

Last year, in November, I wrote a post asking “Is the rental housing industry recession-proof?” In that post I mentioned that the industry didn’t seem badly affected by the 2008-2009 recession, which was probably a fair conclusion, at least based on what I saw at the time. In that post I also speculated about how the industry might fare in… Read more »

A Reminder Of The Importance Of Defining Purpose-Built Rentals

In this website’s second post, which I made back in July 2019, I explained how the rental supply should always be broken down into purpose-built and non-purpose-built rentals. Purpose-built rentals are dwelling units intended to be used as rentals and are usually found in multi-unit apartment buildings and townhouse complexes. Non-purpose-built rentals are dwelling units intended to be owned but… Read more »

Taking A Close Look At London

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Recently, while fiddling around with some CMHC data for London, I put together the following charts based on some calculations I was making with the data. These charts compare the growth in the supply of purpose-built rental apartments and townhouses versus average vacancies and average rents, by building age, for the period 2004 to 2019. Building age is separated into… Read more »