Rental Market Tightened in Q3 2016

TORONTO, October 24, 2016 – Toronto Real Estate Board President Larry Cerqua
announced that the number of lease agreements signed for condominium apartments
listed on TREB’s MLS® System was down by 4.8 per cent 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 per cent.
“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, at least in part, 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,”
said Mr. Cerqua.
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 per cent to $1,777. The average two-bedroom rent was up by 7.9 per
cent 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.
This means that competition between renters was enhanced, which fed through into
average rent increases well-above the rate of inflation,” said Jason Mercer, the TREB’s
Director of Market Analysis.

Sanjay Pandit

Sanjay Pandit

Sales Representative
CENTURY 21 People's Choice Realty Inc., Brokerage*
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