How hot is the residential housing market? Well, for the first time in decades, developers are considering building rental housing because they can actually make money — buoyed by consumers priced out of becoming homeowners.
In Toronto’s red-hot housing market, where January prices across existing homes climbed 22.6 per cent from a year ago, consumers have been flooding back to apartments where the vacancy rate was already just 1.3 per cent, according to a Canada Mortgage and Housing Corp. October market survey.
A report from Avison Young suggests that tight vacancy rate, which the company says is now closer to one per cent, is leading to rising prices that have seen what it calls “challenged” properties go for $150,000 per rental unit and up to $300,000 for premium properties.
Retrieved From: Financial Post
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