TORONTO - After stagnating for two decades, construction of rental buildings is on the rise in the red-hot real estate markets of Toronto and Vancouver. Some figures on the emerging trend:
In the pipeline: There are currently eight apartment buildings, containing a total of 2,458 rental units, under construction in the Toronto area. Another 37 buildings containing 9,207 units have been proposed. That's a nearly 75 per cent increase over the 6,723 rental units that have been built in the Greater Toronto Area since 2005.
Big ambitions: The City of Vancouver aims to have 5,000 new rental units built by 2021.
Tight rental markets: The vacancy rate in Toronto remained stable at 1.6 per cent from the fall of 2013 to the fall of 2014, according to CMHC. In Vancouver, the vacancy rate declined from 1.7 per cent to one per cent during the same period.
Soaring rents: The average monthly rent for a bachelor apartment in Toronto grew nearly three per cent to $896 between the fall of 2013 and the fall of 2014. The average cost of a two-bedroom also climbed roughly three per cent during the period, to $1,251. The average cost of a bachelor apartment in Vancouver also saw a three per cent jump during the period to $876, while two bedroom rentals climbed more than two per cent to $1,311.
Home prices soar: In the Greater Toronto Area, the average selling price for all home types climbed to $649,599 in May, up 11 per cent from a year ago. Greater Vancouver saw a 9.4 increase to $684,400.
—Data compiled from Urbanation, Canada Mortgage and Housing Corporation, the City of Vancouver, the Toronto Real Estate Board and the Real Estate Board of Greater Vancouver.