Toronto is one of the busiest cities in Canada. As the capital of Ontario, Toronto sees over $10 million overnight visitors and almost $20 million day visitors. Toronto boasts museums, beautiful views, parks, and a vibrant nightlife scene. It’s no wonder that Toronto is incredibly popular with tourists. But where in Toronto are the best places to own an Airbnb property?
Before we go into the best places to own an Airbnb property in Toronto, we must first explain how we arrived at the chosen areas and which statistics we considered in our analysis.
Which Data Insights Did We Consider in This Analysis?
Annual Occupancy Rate
The Occupancy Rate is a crucial factor for the majority of investors in vacation rental properties. It provides insight into the average number of days expected to be sold in a given one-month period. This information is valuable as it can help investors avoid markets with an average occupancy rate below 25%, which is generally considered unwise.
Average Daily Rate
By providing information on the average price per night for each sold booking in a targeted investment market, the Average Daily Rate can be used with the Occupancy Rate to estimate potential earnings. This combination of data offers investors an accurate snapshot of their potential profitability in the desired market.
Market Supply
Market Supply refers to the total number of currently active listings in a given area. This metric can be leveraged to gauge the popularity of the target market and identify peak demand months. It’s important to note that hosts may temporarily withdraw their listings from websites like Airbnb or Vrbo for various reasons such as annual renovations, personal use of their property, or renting it out on a long-term basis during the off-season.
Best Places to Own an Airbnb in Toronto
Downtown Toronto
Like the center of any city, downtown Toronto is where most of the action happens. You’ll find the CN Tower, the Rogers Center, and the iconic Royal Ontario Museum in downtown Toronto. It’s also regarded as the culinary hub of Toronto, with hundreds of bars and restaurants. Downtown is also the new business hub, so a vacation rental here would attract business travelers as well as tourists.
Average Daily Rate: $145-$210
Annual Occupancy Rate: 67%
Average Annual Market Supply: 14,200
Yorkville
Yorkville is an affluent neighborhood located in downtown Toronto, known for its high-end shopping, art galleries, and restaurants. This area is a popular choice for luxury vacation rentals and attracts a high-end clientele.
Average Daily Rate: $160-$250
Annual Occupancy Rate: 68%
Average Annual Market Supply: 150 – 300
Harbourfront
Harbourfront is a waterfront neighborhood located in downtown Toronto, offering stunning views of Lake Ontario. The area is known for its recreational activities, including kayaking, boating, and biking. Buying a vacation rental property in this area would provide easy access to the waterfront and nearby attractions, including the Harbourfront Centre and the Toronto Islands.
Average Daily Rate: $185
Annual Occupancy Rate: 63%
Average Annual Market Supply: 1,400
Leslieville
Leslieville is a trendy neighborhood located in the east end of Toronto, known for its vibrant arts and culture scene, boutique shops, and restaurants. This area is a popular choice for vacation rentals and attracts a younger, hipper crowd.
Average Daily Rate: $95-$140
Annual Occupancy Rate: 58%
Average Annual Market Supply: 950 – 1,050
The Beaches
The Beaches is a picturesque neighborhood located in the east end of Toronto, known for its beautiful beaches and boardwalk. The area offers a laid-back atmosphere and is a popular choice for families and those looking for a more relaxed vacation rental experience.
Average Daily Rate: $120 – $190
Annual Occupancy Rate: 59%
Average Annual Market Supply: 1,300
In Conclusion
In conclusion, these are just some of the best places to buy a vacation rental property in Toronto. Ultimately, the decision on where to buy will depend on your budget, investment goals, and personal preferences. It’s important to do your research and work with a local real estate agent who can help you find the best investment property for your needs.
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