Echo kids are moving on — from their parents’ homes to downtown rentals

All those twenty-something echo “kids” who have been living at home in the wake of the 2008 recession seem to be finally moving out of their childhood bedrooms and into the real world now that job prospects are looking brighter.

Only problem is, they are fuelling some of the most intense demand for rental accommodation seen in Toronto in the last 20 years.

“Huge pent-up demand” among 25- to 30-year-olds, combined with more people opting to rent rather than buy since the condo market started softening last summer, is putting significant pressure on Toronto’s rental market, says Canada Mortgage and Housing Corporation market analyst Shaun Hildebrand.

Demand, especially for rentals in brand new downtown condo buildings, has been unrelenting right through the usually quiet winter months and bidding wars have become commonplace as folks like Nicole Shlass, 25, prepare to move out of family homes and into the heart of the city.

“Now I feel really bad for my clients when they don’t get a place, because I know how devastating it can be,” says Shlass, a novice realtor who has helped dozens of people find downtown rentals, but was recently beat out for a two-bedroom condo on Portland St. she’d hoped to share with a girlfriend.

Source: http://www.thestar.com/business/real_estate/2013/03/28/echo_kids_are_moving_on_from_their_parents_homes_to_downtown_rentals.html

Advertisements

First-time buyers find Toronto real estate market hot as ever

First-time homebuyers Jody and Michael Fegelman have heard a lot of talk over the last year about Canada’s cooling housing market. All the couple have felt is the sting of its heat.

During their 1½-year search for a home for their two young children, the Fegelmans have been on the losing end of three grueling bidding wars. They have paid for a home inspection on a place someone else got by paying $80,000 over the asking price.

They’ve felt heartache, disappointment and fear that their children Jack, 5, and Lilly, 2½, would be renters for life.

“My parents just kept saying, ‘Wait. Prices are going to come down,’ says Fegelman. “But the truth is, there is a boom going on in Toronto. I don’t think things will change or bidding wars will stop.”

Over the last four years, Finance Minister Jim Flaherty has tightened mortgage lending rules in a desperate bid to bring reason to the red-hot housing market, especially in Toronto and Vancouver where prices have hit the stratosphere during the last decade, propelled largely by low interest rates.

Read More News>>