Sep 19, 2002 - Condominiums are the GTA's rental supply
January 18, 2005
September 19, 2002
Condominiums are the GTA's rental supply
This report has been prepared by Will Dunning Inc., at the request of the Greater Toronto Home Builders. Association and the Fair Rental Policy Organization. It provides data on the growing supply of new, investor-owned rental condominiums in the Toronto area, and an indication of the market impacts.
Condominiums Provide a Significant Supply of New Rental Apartments [PDF]
Toronto - Rented condominium apartments have supplanted traditional rental housing as the primary source of rental housing supply in the Greater Toronto Area, concludes a report commissioned by the Greater Toronto Home Builders' Association and the Fair Rental Policy Organization.
The report, prepared by housing economist Will Dunning, finds new rented condominiums now outnumber new conventional rentals by about 6 to 1. Dunning predicts that in addition to the 1,300 units of conventional purpose-built rental apartments currently under construction, there will be 4,000 units of rental condominiums added to the GTA in both 2002 and 2003, for a total of 9,300 units, not including any new conventional rental housing started in 2003.
"Builders are putting up condominiums in record numbers, and now we know one of the underlying factors behind this," said Sheldon Libfeld, president of the GTHBA. "We're getting much needed rental supply, and creating lots of jobs in the process - it's great to see the market working so well."
"Large investors are afraid to invest in purpose-built rental buildings because both opposition parties have said they will bring back punitive rent control policies," said Vince Brescia, president and CEO of the FRPO. "This has created a market opportunity for smaller investors to meet rental housing demand through condominiums. This new supply is driving up vacancy rates in the GTA, and owners of existing buildings are responding with competitive rents and incentives," Brescia said.
With more than 1,100 members, the GTHBA is the voice of the residential construction industry in the GTA. Established in 1921, the association represents a full cross-section of the industry, consisting of home builders, developers, renovation contractors, subcontractors, manufacturers, suppliers, service, professional and financial firms.
FRPO is the largest association in Ontario representing those who own, manage, build and finance residential rental real estate properties. With more than 800 members in every area of Ontario, from small landlords to the largest property management firms, FRPO represents the full spectrum of the industry in this province.
Note to editors: Click the immediate link for a PDF copy of report
Condominiums Provide a Significant Supply of New Rental Apartments
Fair Rental Policy Organization
Vince Brescia, President and CEO, 416-385-1100 ext. 20
Utilia Amaral, Communications Manager, 416-385-1100 ext. 21
Greater Toronto Home Builders' Association
Suzanna Cohen, Director of Communications, 416-391-3450