As Toronto Offices Reopen, Professionals Who Moved Out of the City Are Making Their Way Back

As Toronto reopens, city dwellers make their way back

When the pandemic hit in 2020, hundreds of Toronto residents scurried to the suburbs to look for more affordable homes. Now that downtown offices and workplaces are reopening, Torontonians who purchased homes outside the metropolis are trying to buy or rent a second home in the city. Consequently, investors and the housing market in the downtown core are feeling the heat.

For many young professionals, looking for a home in the city again is highly cumbersome. Looking for a new residence is not an easy task and affording a second home is not always feasible, especially for the age group just recently joining the workforce. However, buyers and renters are left with little to no choice when faced with skyrocketing gas prices and a housing market that shows no sign of slowing down.

A recent report by the Toronto Star highlights how single professionals who purchased homes outside of Toronto are now looking for rentals downtown. While some are looking to keep and rent their out-of-town dwellings, others are looking to sell. Regardless, living in Toronto is the goal, and investors will reap the benefits more than anyone.

With millennials and Gen Z's making their way back to the city, the Toronto housing market will continue to soar. Meaning investors will significantly profit from the number of individuals who will not be able to afford a second home and will have to rent. Now more than ever, buyers are encouraged to invest in the city before it becomes too expensive.

Toronto natives are not the only ones driving the market – immigrants and newcomers to the city also contribute to this unprecedented growth rate. With the government expecting a surge in population over the next 10 years, considerable growth will come from immigration. In fact, the 2021 Annual Report to Parliament on Immigration released that Canada expects to welcome 1.3 million people over the next three years.

 

As Toronto Reopens, City Dwellers Who Moved Out of the Downtown Core Are Making Their Way Back 2

A recent report by CBC revealed that Ontario needs to add one million new homes over the next decade to keep up with the population growth. While the current rate of construction sees about 70,000 new homes added yearly, this number will have to increase to 100,000 new residential units to keep up with population growth – especially with Ontario expecting 2.27 million more people by 2031. This tidbit of information is crucial for first-time and seasoned investors that were once worried about pre-construction and new condos remaining vacant.

What’s more, 2021 was considered a record-breaking year in new condominiums and the resale market. This increase is partly due to the lower interest rates and the high demand for housing. As the demand for homes is at an all-time high, the supply is low, heavily influencing the Toronto real estate market. Thus, developers and the City of Toronto are more interested in building condos over low-rise homes.

With Torontonians coming back to the city along with millions of newcomers, the demand for homes will only continue to rise. Evidently, now is the perfect time to invest in a new condominium in the city's heart and surrounding area.

At GTA-Homes, we know investing in a pre-construction condo can be intimidating. For this reason, we offer our Online Condo Investment Presentation so you can feel confident when the time is right. This free service will teach you everything you need to know before making the big move. Register with us today!