The rental vacancy rate in Toronto is at a 16-year low.
New numbers from the Canada Mortgage and Housing Corporation show the rate now sits at 1 per cent.
While the rate has not been lower for more than 16 years, the CMHC says it has been lower before, dropping below 1 per cent in the late 1990s.
Economist Ted Tsiakopoulos says there are three main factors for driving the vacancy rate, and it reflects a strengthening economy.
The job growth, especially among youth, is one of those factors, given that age group has a high propensity to rent as opposed to buy a home. The continued increase in home prices is also forcing more people to rent. Another factor, he says, is increased immigration.
The lower vacancy rate is causing the turnover rate to drop as well, given there's less choice for renters. That rate now sits at 14.5 per cent, more than a per cent lower than the previous year.
The average two-bedroom condo in Toronto now costs $2,300.