Toronto rental supply surges after Airbnb, short-term rental market plunges: experts

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Toronto is seeing an increase in the number of apartments for rent after owners of properties used as Airbnb rentals sat vacant for months during the pandemic.

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Scott ingram , chartered accountant and real estate agent at Century 21, said that from what he saw on MLS – only one source for those looking for rentals, as many also rely on Kijiji or Padmapper – the rental offer of Toronto is high right now.

“I don’t imagine there is such a great demand for short-term rentals right now, without international travel, and even interprovincial travel is disrupted,” he said.

“Who wants to climb up a metal tube and breathe recycled air for several hours right now? But maybe some Ontario travelers want to come to Toronto? But all the tourist activities you would like to do are restricted.

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Toronto banned Airbnb and short-term rentals in mid-April, but the province lifted those regulations on June 5.

Ingram said people trying to rent multiple Airbnbs as a business would likely have tried to fill their homes by now, either by moving into the long-term rental market as soon as their short-term rental income fell to zero. , or by opening their Airbnb. calendar to the minute that was allowed them, if not before.

“But I guess people who rent rooms in their own homes may be more fearful of having strangers in their home, especially anyone who has just arrived from abroad,” he said. -he declares.

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Airbnb spokesperson Alex Dagg said although the tourism industry has been affected by the COVID-19 pandemic, Airbnb has not seen “a significant change on our platform in Canada” , adding 92% of hosts globally, according to a recent survey, responded that they plan to host as often as before, or more often, once the pandemic is over.

“Now that many Canadian provinces have lifted their restrictions on short-term rentals, we are working with the governments of Canada to ensure a safe and responsible return of travel to Canada and wherever we operate,” said Dagg.

“In fact, Airbnb is starting to notice an increase in local travel on its platform globally and internal platform data reveals early signs of planning for future trips with a focus on travel. near. “

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Real estate research firm Urbanation said Radio-Canada last month the number of new leases signed in the second half of June was down 27% compared to the same period last year. In May, new lease signings were down 41% in May year-over-year.

“If you have the ability to move, now is the right time,” Urbanization market research director Pauline Lierman told the outlet. “You might have a choice when you come to the market. “

Lierman said the evolution of the rental market is unprecedented and could continue in 2021 with 20,000 newly built units coming into service by the end of the year.

Web developer Jaco Joubert studied Airbnb’s effects on condo rentals by taking pictures of 15 downtown condo towers at night for a year to check if the lights were on to determine if they were occupied.

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Before COVID-19, he calculated that 5.6% was empty and at the start of the pandemic. This number has more than doubled to 13% in some buildings.

He used the Ice Condos – at 12 and 14 York St. – as a measure, since these addresses are well known for short-term Airbnb rentals.

He said there are now 138 units available for rent and 47 for sale in these buildings. For context, he said in June 2019, there were 4,000 rentals on the market and last month there were 7,400.

“It’s almost double. These buildings, since the Airbnb market collapsed, have exploded with rentals, ”he said.

Joubert added that he has seen rental prices drop from March until now.

A one-bedroom apartment that cost $ 2,000 could now cost $ 1,800 a month in rent, he said. Less, he bet, if tenants present a low-cost offer to a landlord anxious to recoup lost revenue.

The Advocacy Center for Tenants Ontario said that while prices may have come down slightly, most units remain overpriced for the average tenant who can only pay around $ 1,200 per month for an apartment of one size. bedroom.

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