City life returns
Thursday Nov 04th, 2021
Based on the deputy chief economist of CIBC, Benjamin Tal, who believes that with much of the country reopening and the anticipated return of works to the office, the condo market is poised to have a major come back. Tal cites economic trends as major drivers of the looming condo market boom. He believes the Canadian economy is ready for a strong recovery, bringing a return to pre-Covid normalcy.
Another signal of the condo market rebound is that rental fees are rising. Apartment rents increased for the first time in a year and half in the GTA during the second quarter (Q2) of 2021, according to TRREB. The average one-bedroom rent went up by 3.7 per cent in Q2, compared to Q1, while average two-bedroom rent rose by 5.6 per cent.
It is clear that rental market conditions are tightening and will continue to do so as population growth resumes. This will result in declining vacancy rates and an acceleration in rent growth into 2022.