Toronto-area subdivisions flooded by single-family home rentals

Speculators who bought in some new Toronto-area subdivisions are flooding the market with single-family homes for rent, driving down prices in an effort to cover their costs.

“I don’t suspect these are investment properties by design, but rather by necessity,” said Michael Waters, CEO of Minto Group, who said that in his company’s experience rental-investors are more rare in the detached new house market, compared to the condominium space. “I suspect that what we’re seeing here is that buyers who bought in the boom – early 2021 and 2022 – are now taking delivery of their home. In many cases they may have been speculating based on the resale market, but they are not seeing the prospect to resell the home at a premium to what they paid.”