Toronto Rental Cost (& AirBnB) Issues

[SkyGod]

Don't let the headlines take your eye off the ball.....Toronto doesn't have a housing crisis (the housing market is very healthy)...Toronto has a social assistance crisis. Whose job is it to manage that...private landlords? Nope.

Also, individuals have to take some responsibility and act a little less entitled. If you can't afford to live in the city, what are you doing here? I'd love to live in Monaco, but rather than ask the private property owners to subsidize my lifestyle, I simply decide to not move there.

What is a "healthy" housing market? Because there is no way you could use that to describe Toronto as far as I can tell. The prices are completely detached from any underlying fundamentals now. When working professionals can't afford homes in a city, it is not "healthy". We're not talking about people on pogey...we're talking about people with six figure incomes.

 

[freshcutgrass]

When working professionals can't afford homes in a city, it is not "healthy". We're not talking about people on pogey...we're talking about people with six figure incomes.

But they can afford them...that's why they are gobbling them up as fast as they come on the market...that's why there are record numbers of units, yet a 1% vacancy rate.

 

[SkyGod]

The median family income in Toronto CMA is less than $70k. How expensive of a home can you afford with that income? I'd love to see some listings in Toronto that a family could fit in for that price.

 

[freshcutgrass]

The median family income in Toronto CMA is less than $70k. How expensive of a home can you afford with that income? I'd love to see some listings in Toronto that a family could fit in for that price.

Quit changing the goalposts. You said people with six figure incomes can't afford to rent in Toronto. The evidence suggests they can and do. Personally, I would suggest purchasing, because Toronto is the only major first world global city I can think of with condos for 200k.

If the rental market in Toronto is too much for people, then move to Peterborough or something. Do people who shop at Walmart go into Holts and complain they can't afford to shop there? Same thing.

 

[Johnny Au]

Quit changing the goalposts. You said people with six figure incomes can't afford to rent in Toronto. The evidence suggests they can and do. Personally, I would suggest purchasing, because Toronto is the only major first world global city I can think of with condos for 200k.

If the rental market in Toronto is too much for people, then move to Peterborough or something. Do people who shop at Walmart go into Holts and complain they can't afford to shop there? Same thing.

Manhattan, City of London (the borough in the central part of London), the inner wards of Tokyo, and Hong Kong Island would like a word with you.

 

[freshcutgrass]

Manhattan, City of London (the borough in the central part of London), the inner wards of Tokyo, and Hong Kong Island would like a word with you.

And what is it you think they would say?

 

[Momin]

City Council Passes Tenant Protection and Rent Control Motions

 

[SkyGod]

City Council Passes Tenant Protection and Rent Control Motions

Misleading headline. There is still no rent control for post-91 buildings and the vote was meaningless virtue signalling.

 

[jozl]

And, of course, Mammoliti was the only counsellor who voted against it (vote was passed 40 to 1). What a turd this guy is.

 

[jje1000]

Interesting notes on densification:

Outdated low density bylaws insulate the wealthy, exclude the rest
Rising house prices are creating windfall profits for homeowners and so there is every incentive for the “haves” to resist change and to pressure local political leaders to oppose intensification.

https://www.thestar.com/opinion/com...ws-insulate-the-wealthy-exclude-the-rest.html

Boomers livin’ large on Toronto’s soaring real estate need to rethink: Wells
Maybe the too-big homes in Toronto should be scaled back, refashioned into European-sized dwellings.

https://www.thestar.com/business/20...oaring-real-estate-need-to-rethink-wells.html



I think this is a good idea, but it will be difficult to determine if housing units are unoccupied (just wait until the inevitable Star/CBC heart-tug article about some elderly owner who was unfairly taxed because of some reason):

Toronto, province eye vacancy tax on unoccupied homes and rentals
An empty residence tax might curb property speculation and open up some housing for families.

https://www.thestar.com/business/2017/03/30/city-province-eye-tax-on-unoccupied-homes.html

 

[jje1000]

Continuing issues for non-rent controlled buildings:

Tenants at two west-end condos see rent double
Critics say change is needed in Ontario’s rent control laws.

Over the weekend, she received a letter from KSV Advisory, a company that restructures insolvent businesses, informing her that rent would increase from $1,650 to $3,300, starting July 1.

https://www.thestar.com/news/gta/2017/04/03/tenants-at-two-west-end-condos-see-rent-double.html

And some hints from Wynne:

Ontario eyes measures to stop landlords hiking rents to dodge future rent control

Wynne refused to say if any new rent-control measures will be in her government’s spring budget expected later this month. “We’ll be bringing them forward soon,” she added.

It is “really unacceptable” for landlords to dramatically raise rents on their tenants — in some cases doubling them — to avoid possible rent control in future, says Premier Kathleen Wynne.

“It is an extremely urgent matter. We are on it,” she told reporters Tuesday in response to a Toronto Star article about a west-end condo landlord raising a tenant’s rent to $3,300 from $1,650 effective July 1.

“We are moving as quickly as we can,” she added.

Wynne refused to say if any new rent-control measures will be in her government’s spring budget expected later this month.

“We’ll be bringing them forward soon.”

Housing Minister Chris Ballard has already signalled the government is considering an extension to controls that limit rent increases on buildings constructed since 1991.

New Democrat MPP Peter Tabuns (Toronto-Danforth) has proposed a private member’s bill to make all buildings subject to rent control.

The 1991 cut-off date was set years ago in the hope that it would encourage more construction of apartment buildings and other rental units.

But, Wynne said at a forum for long-term care workers near the airport, that has not happened to the extent to meet demand.

https://www.thestar.com/news/canada...iking-rents-to-dodge-future-rent-control.html

 

[freshcutgrass]

Continuing issues for non-rent controlled buildings:





https://www.thestar.com/news/gta/2017/04/03/tenants-at-two-west-end-condos-see-rent-double.html

And some hints from Wynne:



https://www.thestar.com/news/canada...iking-rents-to-dodge-future-rent-control.html

Ha Ha...serves them right. Of course all this "talk" about new rent controls would backfire, and cause rent increases. And there's nothing they can do to stop that. Not that the story posted sounds like it has anything to do with that...it looks like because of some bankruptcy issues, they want the units vacant. (If they can get $3300/mnth, then it was obviously absurdly underpriced, or it's absurdly over-priced to make it vacant) Nothing wrong with that.

Otherwise, it's still a free market, and rents will be controlled by what the market will bear...that's how the free market works. And that's why there aren't much new dedicated rental buildings built...just individually owned condo units which are not subject to rent controls and have much lower tax rates. If you are a renter looking for long term residency, then I suggest you not consider those types of units.

 

[Tuscani01]

But they can afford them...that's why they are gobbling them up as fast as they come on the market...that's why there are record numbers of units, yet a 1% vacancy rate.

Your idea of "afford" doesn't align with reality. When people are spending over 50% of their income on rent, it's not affordable. Even over 30% goes against anything a financial planner would advise.

Having a mortgage on a $600k home today also isn't affordable, despite people gobbling them up. The fact that people are buying up real estate has absolutely no relation to affordability - especially when we have no stats on the number of foreign buyers, which could account for much more of the market than current estimates. The minute interest rates start to climb and these people go to renew mortgages, we'll be in an even worse off situation.

The reality is that housing is a need, not a want. People are paying exorbitant amounts on rent and housing because they have no choice. This doesn't benefit anyone, as every extra dollar that goes into housing is a dollar taken away from every other industry that relies on consumer spending, which then affects every industry that supplies those industries, which leads to less jobs and people being stretched even more thinly than they are today.

But hey, FREE MARKET! It's working, right? There are clearly no issues at all!

 

[Tuscani01]

And that's why there aren't much new dedicated rental buildings built...just individually owned condo units which are not subject to rent controls and have much lower tax rates.

Rent controls (in terms of the rate of rent increases) don't apply to buildings built after 91 - so no, that's not why new dedicated rentals aren't being built. (which also isn't true, as there are thousands of units currently approved or under construction by the city at this moment)

Also, condo owners still have to abide by every other rule that a rental only building would have if they choose to rent their unit out. Security deposits are still illegal, banning pets is still illegal, a landlord still has to give 90 days notice of rent increases, 24 hours notice before entering a unit, maintaining the unit in a good state of repair, etc.

 

[freshcutgrass]

The fact that people are buying up real estate has absolutely no relation to affordability

The reality is that housing is a need, not a want. People are paying exorbitant amounts on rent and housing because they have no choice.

But hey, FREE MARKET! It's working, right? There are clearly no issues at all!

First of all, I question your use of the terms "affordability" and "exorbitant" in this context.

Secondly, your main problem is that you are still confusing the two separate worlds of the real estate market, which is a capitalist free market with socialism in housing. If you can't afford to be in the real estate free market, then you require some sort housing subsidy, which is provided by the government. So you are placing the blame in the wrong direction (which is what the government is hoping you will do).

So yes, the free market is working...it's the social housing part that isn't working. By trying to make the free market do what it isn't designed to do, you are simply screwing everything up....the proof is in the pudding.