The Growing Demand for Purpose-Built Rental Housing in Toronto

As Toronto’s population continues to expand rapidly, driven by factors such as high immigration rates and urbanization, the demand for rental housing has reached unprecedented levels. The city’s rental market is under immense pressure, with supply struggling to keep pace with this surge in demand. For investors and developers, this environment presents both significant challenges and unique opportunities.

Market Pulse

  • The supply of professionally owned and managed PBRs versus investor-owned condos needs to be rebalanced. The current mismatch is likely to sort itself out by 2028. – Wes Myles, President and CIO, Clifton Blake Room for rent | National Post

The Rental Market at a Crossroads

Toronto’s rental housing crisis is multifaceted. Rapid population growth, coupled with limited housing supply, has led to rising rental prices and increased competition for available units. With home ownership becoming less attainable for many, the demand for rental properties has surged. In response, developers are exploring various strategies to address this growing need, focusing on purpose-built rental units that can offer long-term stability in an otherwise volatile market.

Feature Article: Room for Rent

https://nationalpost.com/life/homes/urban-living-room-for-rent

In a recent article published by the National Post, Clifton Blake’s own Wes Myles shared his insights on the current state of Toronto’s rental market. He emphasized the need for increased investment in purpose-built rental properties to meet the surging demand. Wes pointed out that, despite the challenges, there are significant opportunities for investors who understand the dynamics of the market and are prepared to take a strategic, long-term approach and invest in sustainable, community-focused developments.

In his interview with the National Post, Wes highlighted that government policies and incentives are crucial to encouraging the development of new rental units. He also noted that while there are no quick fixes, consistent efforts from developers, investors, and policymakers can gradually alleviate the supply constraints.

Wes Myles on the Future of Toronto’s Rental Market: “We’ve been lobbying all levels of government to recognize the difference between condos and PBRs for years,” says Myles of Clifton Blake, who specializes in multi-family rentals in Toronto’s core. “Now finally they’re having an epiphany and realizing we need to motivate builders to invest in new rental properties with professional ownership if we’re going to start solving the housing crisis.”

The Strategic Role of Purpose-Built Rentals in Solving the Rental Crisis

Purpose-built rental housing is essential for addressing Toronto’s growing demand for affordable and quality rental accommodations. Unlike condominium conversions or privately owned rental units, purpose-built rentals are specifically designed and constructed for long-term rental purposes. This makes them a stable and reliable option for tenants and investors alike.

The Junction: Clifton Blake Group’s new development under construction comprising of 120 purpose-built rental units at 2946-2968 Dundas Street W.

Increasing the supply of purpose-built rental units is crucial for alleviating the city’s housing shortage. The current supply-demand imbalance has led to rising rental prices and a highly competitive market. By investing in purpose-built rentals, we can provide sustainable housing options that cater to a diverse range of residents, from young professionals to families and seniors.

Clifton Blake is at the forefront of addressing this housing crisis by focusing on developing and managing mixed-use, multi-family rental properties in core urban areas. Our projects are designed to provide high-quality rental units in neighborhoods with strong demand, ensuring a steady supply of housing that supports the community and offers stable returns for investors.