Toronto Real Estate Board President Mark McLean announced that there were 9,635 condominium apartment rental transactions reported through TREB’s MLS® System in the third quarter of 2015. This result represented a 22.6 per cent increase compared to Q3 2014. The annual increase in rentals was slightly greater than the annual increase in the number of units listed for rent.
One-bedroom and two-bedroom units accounted for almost 95 per cent of condominium apartment rentals. The number of one-bedroom apartments rented was up by 24.7 per cent compared to Q3 2014. The number of two-bedroom apartment rentals was up by 18 per cent.
“Investor-owned condominium apartments remained a very popular option in the third quarter and, indeed, over the past year as well. Strong growth in rental listings were matched by strong growth rental transactions. This tells us that there are a lot of households looking to rent in the Greater Toronto Area and that many of these renters are choosing units in recently completed condominium apartment projects,” said Mr. McLean.
Average rents for one-bedroom and two-bedroom condominium apartments were up year- over-year by 1.9 per cent and 2.2 per cent respectively to $1,657 and $2,241 per month. These rates of growth outpaced the annual rate of inflation in the third quarter.
“There was enough competition between renters in the third quarter to prompt moderate growth in average rents. Furthermore, rental market conditions through the first three quarters of 2015 suggest that condo rental vacancy rates have remained low from a historic perspective. With this in mind, it is reasonable to assume that positive average rent growth will be sustained through the end of the year and into 2016,” said Jason Mercer, TREB’s Director of Market Analysis.
|2015 Q3 Rental Market Summary|
|Apartments||Leased||Leased||VYA||Average Rent||Average Rent||VYA|
|Townhouses||Leased||Leased||VYA||Average Rent||Average Rent||VYA|