Will Furnished Rental Prices Increase?
If you are considering renting a property in Toronto, you may be concerned that Google’s new expansion plans will negatively affect rental prices. As Toronto becomes an increasingly important hub for the tech industry, it’s possible that corporate condo units may become too expensive for renters due to higher demand.
Let’s take a look at Google’s plans and discuss what effects this will have on the real estate industry in the city.
Google’s Smart City Plans
Over the past few years, Google’s sister company Sidewalk Labs has also been given permission to create a “smart city” in Toronto. The smart city will have modular homes, solar power, and 5G for all of its inhabitants. The company faced pressure due to fears about dystopian-esquire data harvesting.
Rental Rates in a Smart City
Despite the controversy caused by the smart city plans, the new part of Toronto is sure to affect house prices in local areas. With major tech advancements comes an increase in demand, which in turn can cause rental rates to spike. Homes in the new smart city will all be equipped with the latest smart systems and will thus be more attractive to potential renters in and around this new coveted area.
Google’s New Offices
Earlier this year, Google revealed its plans to build three new Canadian facilities, one in Waterloo, one in Montreal, and one on King St E in Toronto. Each building will accommodate 5,000 employees. And Google isn’t the only tech company choosing to expand in Toronto – it is estimated that the industry will be responsible for 216,000 new jobs in Canada by 2021.
With this rapid rate of growth, the tech industry will be a major player in bringing new families to the GTA in the next few years. Naturally, as jobs are created, more accommodation will be needed, and the demand for well-located homes will go up.
How Will This Expansion Affect Furnished Rental Prices?
In terms of furnished rental apartments, such as the rentals we provide here at Toronto Luxury Suites, it is possible that rental rates may increase in the coming years. Rental rates are based on demand, home values, and occupancy rates.
With more and more people working in the GTA, it’s possible that the demand for centralized accommodation will increase. However, lots of new condominiums are currently being built in the areas surrounding new tech offices in the city, which may help to keep prices steady.
Another factor to consider is the relativity of affordability. Most landlords will welcome workers from the tech sector as their salaries tend to be relatively high. The wealthier an area becomes, the more landlords can charge for accommodation in this area.
Why You Should Choose Toronto Luxury Suites
Here at Toronto Luxury Suites, we provide high quality furnished rentals for both short and long term occupancies. While our apartments are perfectly located, beautifully furnished, and fully equipped, we are committed to maintaining affordable rental rates for our customers.
By choosing Toronto Luxury Suites, you will never be taken advantage of when it comes to your monthly rent. Regardless of the tech industry’s rapid expansion in the city, we will always keep our prices within a reasonable and affordable range.
Check out our listings for more information on what apartments are available today.