I thought I would throw this out for discussion. My collegues and I were discussing certain trends in the Toronto development market, and we were speculating on how the growth in condo development would affect the rental market. Of course, the natural line of reasoning would suggest that as there are more condos built, there will be a decrease (in terms of $) in the rental market. But on the flip side, since less people are renting, Property managers may in fact trend towards increasing rent. What do you guys think?

I've been through at least three of these build-boom-bust cycles. This is a renter's market for sure and I think it will stay that way for some time to come. Property owners have to cover their expenses so there is a limit to how low they can go on rents.Here's an interesting article on the subject from the Toronto Star:
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&call_pageid=971358637177&c=Article&cid=1096409410651