Toronto has been in the spotlight for its development over the past several years, and its success is adding to the problem of unattainable rental prices. If you are planning on relocating or investing in the Great White North, read on to find out what’s ahead.
The New Silicon Valley
The tech boom is one of the primary markets accelerating in Canada. Toronto’s status as a leading tech and entrepreneurial hub is attracting more firms than ever. This fast-growing destination has a booming condo market, to the extent that mortgage broker Toronto is now referring to it as “Silicon Valley North.”
Canadian Prime Minister Trudeau’s immigration policy is only incentivizing the influx of highly-skilled tech workers. Now that it’s become more difficult to attract talent to the United States, more companies are gravitating towards Toronto. The challenge now would be to match the venture capital investments of other tech hubs.
More Chinese Buyers In Luxury Real Estate
A recent analysis done by RE/MAX shows that Canada has reached a peak in the high-end market, and will only increase in demand next year. Wealthy buyers from Mainland China are once again making their way back into the GTA’s luxury real estate sector.
On the Canadian side, there are limits to people’s funds and a non-resident tax added to the cost. Also, China’s government restricts investment outside of their country. Despite all of these obstacles, East Asians accounted for as much as 60% of those buying million-dollar homes.
Increased Regulation For Airbnb
For quite some time, San Francisco-based home-sharing platform has provided inexpensive lodgings for travelers. However, it has been a thorn in the side of the hotel industry and rental market, as it operates without almost any regulation.
Critics suggest that it is already having an adverse effect in Canada. Airbnb has been under attack for flouting local laws and for disrupting residential neighborhoods.
So far, Canada has banned “party houses” after five people were shot and killed at a Halloween party. The new ruling will be put into effect as quickly as possible, but we’re not sure how it will affect bookings over the holiday season.
What we do know is that it is only the beginning of the crackdown on Airbnb that some say is long overdue. Many argue that it has contributed to higher rent costs and disrupted the housing market. Ideally, it should be held to the same standards and regulations as other companies in the letting and renting industry.
The latest assessment from the Canada Mortgage and Housing Corporation (CMHC) shows that general Canadian real estate is at a moderate risk level. With the current events unfolding, prices in Toronto are accelerating due to the impact of the tech boom. Detached house costs rose slightly above inflation, but condo prices increased by a median yearly salary.