The number of Toronto condos rented in the second quarter of 2016 was down only 2.7 per cent compared to the same time last year, according to the Toronto Real Estate Board.
“Greater Toronto Area Realtors continued to facilitate a large number of rental transactions in the second quarter, as investor-held condo apartments remained an important component of the overall rental supply in the GTA,” said the president of the Toronto Real Estate Board, Larry Cerqua. “If the market had benefited from more listings in Q2, the number of rentals would have likely been above last year’s level.”
The average rent for a one-bedroom condo increased by 6.4% year-over-year, up to $1,710. For a 2-bedroom condo, the average rent increased by 4.1%, to $2,330.
Jason Mercer, the director of market analysis for the Toronto Real Estate Board, said that, “Year-to-date, total condominium apartment completions in the GTA were down compared to the same period in 2015. This contributed to the decline in the number of apartments listed for rent on TREB’s MLS system. However, the number of rental transactions remained
According to the Toronto Real Estate Board, there was a 20.7 per cent increase in the number of condominium apartments rented out in the Greater Toronto Area during Q4 2015 compared to Q4 2014.
“While the ownership market is often top-of-mind when we think about condominium apartments in the GTA, it is important to remember that investor-held condos have become and increasingly important source of rental supply,” said Mark McLean, the president of the Toronto Real Estate Board. “Renters looking for mid-to-high-end units have tended to be pointed at condo rentals. Strong demand resulted in tighter market conditions in Q4.”
The average rent for a bachelor increased 1.7%, the average rent for a one-bedroom increased by 2.8%, the average rent for a two-bedroom increased by 3.3%, and the average rent for a three-bedroom increased by the most at 9.9%.
Jason Mercer, the Director of Market Analysis for the Toronto Real Estate Board, said that, “Tighter rental market conditions resulted in strong increases in average rents compared to last year. Looking forward into 2016, expect rent growth to remain strong if we continue to see growth in the number of transactions outpace growth in the number of units listed for rent.”
The Toronto Real Estate Board has released its rental market figures report for the second quarter of 2014, finding that there was an increase of 25.7 per cent in rental transactions during this time compared to the same time last year, for a total of 7,342 transactions. Listings were also up.
“Condominium apartments rented out by investors represent an important component of the overall rental pool in the Greater Toronto Area,” said Toronto Real Estate Board President Paul Etherington. “These units account for the majority of newly completed apartments listed for rent in the marketplace today. Renters looking for apartments located in popular neighborhoods with up-to-date designs and modern finishes are increasingly renting investor-owned units. This is why the number of rental transactions continued to increase last quarter.”
The average rents for one-bedroom apartments dropped slightly to $1,583, while two-bedroom rents decreased to $2,142.
“Last quarter we saw stronger growth in the number of units rented relative to the number of units listed. This suggests that competition between renters increased,” said the Senior Manager of Market Analysis for the Toronto Real Estate Board, Jason Mercer. “If this trend continues, we will likely experience renewed growth in average rents in the second half of 2014.”