The Manhattan Influence: Shifting Focus to Rentals

Manhattan, often seen as a front runner for urban housing trends, offers a blueprint for Toronto. For over a century, purpose-built rentals have formed the backbone of New York’s housing market. With similar market pressures—rising construction costs, limited investor demand, and regulatory shifts—Toronto developers are increasingly embracing this model.

The trend is particularly evident in neighborhoods where condo sales have slowed but rental demand remains robust, underpinned by an influx of young professionals, tech workers, and remote employees who prioritize flexibility and prefer renting over buying amid economic uncertainty.

Parallel Shifts in Major U.S. Cities

Toronto is not alone in this pivot. Cities across the U.S. like Dallas, Phoenix, Chicago, Los Angeles, Miami, and Seattle are experiencing rapid growth in purpose-built rentals. In these cities, a combination of economic uncertainty, rising home prices, and a growing preference for urban living are making renting a more appealing choice. For example, Phoenix has seen an 85% increase in demand for purpose-built rentals in recent years, while cities like Miami are witnessing 100% growth as more residents seek long-term rental options over ownership.

The trend is being driven by several factors, including higher interest rates, which make mortgages less accessible, and the desire for amenities such as work-from-home spaces, gyms, and modern facilities. Younger demographics, especially Millennials and Gen Z, are opting for rentals that provide convenience and flexibility. This trend mirrors what is happening in Toronto, as its real estate market shifts toward more rental developments due to similar economic pressures​

Toronto’s Path Forward: Adapting to the New Normal

As Toronto adapts to this evolving real estate landscape, the growing trend of purpose-built rentals signals a broader transformation. Developers, no longer relying solely on the condo investment market, are focusing on the steady revenue streams provided by long-term rental income. This shift also dovetails with Toronto’s increasing rental demand, driven by immigration, population growth, and a strong job market that attracts global talent.

Purpose-built rentals may also provide a much-needed solution to Toronto’s ongoing affordability challenges. With fewer investors driving up prices and an influx of new rental units, the market may find some balance, offering more affordable housing options for the city’s residents.

Gladstone Media’s Role in Crafting Communication Programs

At Gladstone Media, we’ve had the privilege of contributing to this shift by developing marketing programs for some of Toronto’s most prominent purpose-built rental properties. Projects like; 101 St. Clair, EXS Rentals and 36 Brentcliffe for Camrost Feldcorp, or Novus and The Cambelle for BGO , represent just a few examples where we’ve navigated the nuanced differences between marketing pre-construction condos and purpose-built rentals.

While both marketing strategies aim to attract potential residents, pre-construction condo campaigns often focus on a long-term vision—enticing buyers with a dream that won’t materialize for several years. By contrast, purpose-built rental marketing requires a more immediate call to action, appealing to individuals making decisions within a 30- to 60-day window.

At the core of both approaches is the same guiding principle: cultivating an emotional connection. Whether selling a dream home that will take shape in the future or presenting a rental opportunity ready to move into, our work is about crafting narratives that make it easy for people to see themselves within these spaces. Through a fusion of artful messaging, authentic representation, and evocative lifestyle photography, we create a story that resonates with potential renters and buyers alike.

As we embark on new projects within major North American Housing Markets, we’re excited to continue shaping the stories that define the purpose built rental landscape, helping developers and residents find common ground in this changing market.

This Makes Us Glad.