Rental Market Tightened in Q3
The Toronto Real Estate Board reported the number of lease agreements signed for condominium apartments listed on TREB's MLS® System was down by 4.8% on a year-over-year basis to 9,164 in the third quarter of 2016 compared to 9,629 a year earlier. Over the same period, the number of condominium apartments listed for rent was down by a greater annual rate of 17.3%.
Demand remains very strong for condominium apartments in the Greater Toronto Area. The key issue in the third quarter was the fact that there was a pronounced decline in the number of units available for rent. The dip in the supply of available rental units can be attributed to fewer condominium project completions during the first three quarters of 2016 compared to last year. This suggests that there were fewer newly completed investor-held units available for rent.
Average one-bedroom and two-bedroom condominium apartment rents were up substantially in the third quarter compared to 2015. The average one-bedroom rent was up by 7.2% to $1,777. The average two-bedroom rent was up by 7.9% to $2,419.
Conditions in the condominium apartment rental market tightened substantially in the third quarter, with listings down on a much greater basis relative to rental transactions. Competition between renters was enhanced, which fed through into average rent increases well above the rate of inflation.
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