According to Morguard’s 2014 Canadian Economic Outlook Report, the Toronto rental market saw healthy and stable housing conditions throughout 2013, a trend that is expected to continue as 2014 progresses.

As of April 2013, the aggregate occupancy rate in rental buildings across the Greater Toronto Area was 98.4 per cent. This rate was higher than the provincial and national average. It was also the second highest average reported over the last decade, indicating a strong and stable market. Demand remained positive throughout the year despite weak youth employment levels, competing rental units in condominiums and fewer migrations to the city.

The report says that demand was influenced, in part, by continued interest in the rental market on the part of investors. “REITs, pension funds, private capital groups and syndicators continued to view the market favourably. The resulting demand depth helped drive aggressive bidding on available assets and strong closing activity,” it says.

Looking forward, Morguard expects the local economy and labour market to improve, which will help to stabilize rental demand. Anticipated recoveries in youth employment and migration will support continued strength in the sector.