Can't Sell It. Then Rent It.

There are less homes and apartments available for rental in Toronto because of economic jitters and a weak real estate market which resulted in a sharp drop in rental vacancy rates in the city. According to the Canada Mortgage and Housing Corporation, Toronto's vacancy rate slipped down to 2.1 percent in 2008 from 3.2 percent in 2007.
Vacancy rates between 2 to 3 percent are indicators that the area has a balanced market. Given the latest figure of 2.1 percent, it points to Toronto moving towards a landlord's market.
When it was the other way around due to a large number of newly built condominium buildings, landlords had to offer renovated units and other freebies like a free TV set to get tenants.
With the change, the cost of renting a two-bedroom unit in Toronto went up 1.7 percent in 2008 to an average of $1,095 a month. Along with the increase in rental was a decline in new housing starts which tumbled down 19 percent in November. In the condo sector, which accounts for almost half of new home construction in Toronto, the decrease was a larger 29% in November.