The housing crisis is about to get worse according to a report by RBC Economics.
Current rates of $2,300 a month in rent for a one bedroom apartment will likely rise if new housing is not doubled.
“Strong demand has pushed rental vacancy rates to historically low levels and rents are now reaching uncomfortable highs,” wrote the report.
“In the coming years, rental demand is only set to go up — way up in the case of Toronto and Vancouver, where high home prices have crushed some home-ownership dreams.”
Other major cities like Vancouver and Montreal have been able to counter this trend by way of increased construction of rental units.
According to the report, one of the factors contributing to the increase is high immigration levels.
“To restore equilibrium over, say, a two-year timeframe, we estimate Toronto’s rental stock must expand by 53,500 new rental units,” suggests the report.