The rental market has not been spared by the pandemic. With COVID-19 restrictions many cities across the country have placed a ban on short-term rentals. This ban in combination with reduced immigration, travel and tourism has had a significant impact on short term rentals like Airbnb's and the result is that there's been a clear shift in the market from short to long-term rentals.
The Financial Post reports an anticipated demand for long-term rentals. Considering that many Canadians have lost their jobs, fewer will be jumping into a large real estate purchase and will turn to long-term rentals instead. What's more, in Canada's urban areas experts believe there will be enough supply to meet this demand, especially as immigration rates drop.
Real estate owners who were once dependant on the income generated by their short term rentals are turning to the long-term rental market to recoup their losses. In fact, according to the Financial Post, some condo units have reported that the number of long-term rentals on the market have increased by 234 percent between February and June 2020. What's telling is that demand for long-term furnished units is also increasing, which is good news for anyone considering entering the rental market with a home share arrangement.
What This Means for Rent
According to the Financial Post, "average rents of furnished rentals in the Greater Toronto Area fell 8.7 per cent year over year in May, while Condos.ca estimates that rents of both furnished and unfurnished listings have declined by about 10 per cent since the pandemic began."
Although it may not have been intentional, market analysts believe the ban on short term rentals has caused a much needed correction in the cost of rent, especially in areas like Toronto and Vancouver where rent was, for many, increasingly expensive.
"Before the pandemic, a one-bedroom condo in the downtown would probably not go for less than $2,200 per month, but now you’re seeing them being advertised for about $1,800,” Andrew Harrild, co-founder of Condos.ca told the Financial Post. “It is a correction that was much needed, and we’re seeing a return to a more balanced market.”
Ultimately, the pandemic has created a silver lining for renters, who will have more affordable options to choose from in urban areas as a result of these changes in the market. It's also good news for homeowners considering a homeshare arrangement. With more demand for furnished rentals, and more people looking for long-term accommodations than ever before, it's a great time to consider entering the market and reaping the benefits of home sharing. From increased financial stability to support around the home and regular social interactions, now is a great time for homeowners to get the most out of their property with home sharing.
The team at HomeShare Alliance is offering online meetings and free phone consultations to answer your home sharing questions. Schedule an appointment to see if homesharing may be a good option for you.