When you consider the rental market and its counterpart, the condominium market, it is okay even if you do not recollect Newton's Third Law of Motion. Sir Isaac Newton declared in 1686 that every action has an equal or opposite response. He could have been talking about the rental market in the twenty-first century, even if he wasn't.
The Newtonian effect is visible in the symbiotic relationship between the condo marketplaces and rental demand. A significant positive force is currently roaring into action. This happened after a significant negative correction in 2020 and the first months of this year.

This is why it's happening.

Investors frequently purchase pre-construction condos with the intention of rental. Because many communities, including Toronto, have limited new development of purpose-built rental units. As a result, the current rental market downturn had an immediate and significant impact on condo sales.

Consider the pandemic's beginnings and the deadliest days as a starting point. Many pundits said that urban life was gone. Further, it could not be recovered in the immediate wake of the lockdown before vaccines could be started to be administered. People in major cities such as Toronto re-located in large numbers after they faced their fears.

Offices and other establishments were closing for the near future. Thus, people acquired suburban residences that can more readily accommodate both families and workspace. This also met a collective psychological demand for a more controlled setting and more separation from others. Others, meanwhile, came back home to live with their parents and save funds. The more apocalyptic among us abandoned the cities. It assured that the places would never be livable again due to the chronic, long-term hazards of infection.

Simultaneously, the government did not allow overseas students and travelers from entering the country. It significantly brought down the long and the short rental sectors. All of these factors came together, resulting in an overabundance of supply. In addition, it resulted in a sharp drop in demand, and an unavoidable drop in rental rates. Rents in Toronto dropped by a stunning 21% from their high in the fall of 2019 and their lowest point in early 2021.

At the first look, the Newtonian response to these acts may not be of equal force. They are, however, swiftly getting momentum.

More individuals received vaccination and Canadians glanced at the gains made in the United States and the United Kingdom. That led to an increase in the urban comeback that commenced in May.  According to Rentals.ca's National Rent Report, market rents in Toronto jumped 1.6 percent month on month in June. When extended over the following year, when borders, workplaces, schools, and, don't forget, patios are all set to reopen, it soon adds up to a substantial rise.

Considering the much-awaited arrival of Canadian immigrants, most of whom have traditionally remained in the Greater Toronto Area, on top of the increasing demand. Approximately two million new Canadians will arrive in the next five years, a level not seen since 1913. Approximately 60% of all those eligible for Economic Class Programs prolong their landed immigrant status. That's because they already fit the criteria as potential employers or employees.

While these people tend to rent in large cities in their first four to six years in Canada, those rents are frequently condo apartments. When they shift from rentals to condos, they become condo buyers. It's also worth mentioning that, as rentals and house prices rise, pre-construction condos retain a vital first step on property ownership for urban youth.

There's little doubt that both rentals and pre-construction condo sales will recover as supply and demand recalibration in the coming months.

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