Top 5 Airbnb Neighborhoods in Toronto

Toronto has one of the largest Airbnb markets in Canada. The city’s short-term vacation rental market is huge, and thousands of entrepreneurs have already managed to launch sustainable businesses here. The market is also extremely competitive, so aspiring hosts should consider professional management service providers like https://hearthomes.ca/airbnb-management-toronto/ to maximize their outputs.

In such a large city, it is also vital to choose the location correctly and understand the target audience. Toronto is visited by various groups of people with all sorts of interests and needs, and different neighborhoods might offer entirely different market conditions. This is why it is important to discover the best parts of the city before launching an Airbnb there.

Best Neighborhoods for Buying an Airbnb in Toronto

For the article, we have selected five neighborhoods of Toronto that are worth considering for aspiring entrepreneurs. They are very different from one another, although there is one common feature they share: it is the potential benefit of starting a short-term vacation rental business there. With a correct and thoughtful approach, all of these locations can become home to profitable and successful Airbnbs.

Downtown Toronto

There are more than 16,500 active rentals in the city, and the largest portion of them is concentrated in Downtown Toronto. This neighborhood is extremely demanded by visitors of all groups, as it universally appeals to the vast majority of guests that come to the city.

Those who visit Toronto for business purposes will have easy access to the offices of the largest companies in the city. Tourists who come to Toronto to explore it will have comfortable options to reach any part of the city in no time. The place offers almost anything a visitor might need: it is densely packed with restaurants, cafes, entertainment venues, and other potential destinations for Toronto’s tourists.

Of course, it is also the most competitive part of the city, and active Airbnbs are literally on every corner. An entrepreneur who decides to enter the market in this neighborhood should be competent enough to sustain this competition. It is one of the most beneficial areas of Toronto, but at the same time, it is one of the riskiest places to launch an Airbnb. The real estate prices here are higher than in any other part of the city, so the aspiring hosts should be prepared to make a significant investment to launch their business.

The Annex

The Annex is a neighborhood that is very contrasting to Downtown Toronto. It is a much quieter place with a richer historical layer. There are multiple interesting museums in the area, and it is possible to explore many preserved and restored buildings from previous centuries.

It is a great destination for those who wish to explore the culture and history of the city. The Annex is also near the University of Toronto, so it is popular among students as well. Lastly, many visitors choose it as a more peaceful alternative to louder and more active neighborhoods of Toronto.

The real estate prices are more acceptable here than in the Downtown area, so the investment required to launch an Airbnb is smaller. The competition here is also rather moderate, compared to neighborhoods that are more popular among tourists. The Annex also has a variety of cafes and restaurants for any taste, so those who enjoy eating out will have a lot of options to choose from.

From a business perspective, The Annex is a great option to start. It is somewhere in the middle between extremely demanded competitive areas of Toronto and the city’s outskirts that are far less profitable to operate in.

Leslieville

Leslieville is another interesting neighborhood in the south-eastern part of the city. It is rather large compared to the previously covered areas of Toronto, and the competition is clearly not as intense there. The district used to be the center of the city’s artistic life, although it is not the case anymore, as many of the artists had to move to other parts of the city.

Nevertheless, it still offers a variety of interesting locations the fans of culture might be interested in visiting. For many people, it is also a cheaper alternative to other neighborhoods in Toronto, so the demand for Airbnbs here is rather stable.

As for the real estate prices, they are rather average for the city: it is not as expensive as in Downtown Toronto, but not as cheap as other remote neighborhoods. The competition here is also not very intense, as the neighborhood occupies a fairly large area. All in all, it is one of the investment opportunities with relatively low risks, but the Revenues will be rather average here too.

West Queen West

West Queen West is a rather unique neighborhood in Toronto. It is essentially a part of the downtown area, but it definitely stands out from the other parts of the city. It is rather small, but it is densely packed with various venues the fans of culture and entertainment enjoy visiting a lot. It is one of the most popular destinations for young visitors of Toronto, so the demand here is very impressive. The place also appeals to tourists who love shopping and eating exquisite meals in luxury restaurants.

From the investor’s perspective, it is a high-risk high-reward opportunity. The competition here is very intense because of the huge demand for Airbnbs in this area, and the real estate prices are extremely high here. Those who decide to launch a short-term vacation rental in West Queen West should prepare everything in advance and offer a top notch service from day one, as the initial reviews can make or break a freshly launched business here.

Kensington Market

Kensington Market is the last neighborhood on the list, and it also has unique market conditions. Similar to West Queen West, Kensington Market attracts a lot of tourists with its antique shops, restaurants, and other interesting venues.

There are not so many real estate options available here, but investors who will be able to purchase a property in Kensington Market are almost guaranteed to have their Airbnb perform well. The real estate prices are high here, but the rates compensate for them, as it is a very desirable neighborhood in Toronto.