Finding a condo to rent in Toronto is tough enough -- paying for it has just gotten a lot harder.
The average annual income required to buy an average-priced resale condo in the Toronto region is now C$100,000, up from C$77,000 a year earlier, according to Urbanation.
“The situation should improve at least somewhat starting in the second half of the year as more condo projects under construction reach completion and buyers begin to adjust to the new mortgage rules,” Shaun Hildebrand, a senior vice president at Urbanation, said in a statement.
Leasing costs at properties purpose-built as rentals also jumped, climbing 16 percent from a year earlier for buildings completed since 2005, the biggest increase since Urbanation started tracking the apartment segment in 2015. While the stock of apartments the firm tracks is small compared with condos, their rents are catching up, according to Hildebrand.
“They were trailing behind in terms of rent growth,” he said by phone. Now, “rental operators are realizing that they’re able to increase their rates up to market levels that are much higher.”