shildebrand's blog

Rent Growth Moderates as Supply Stabilizes

The average rent for condo apartments leased through the MLS system increased by 8.3% in Q1-2017 from a year ago to $2.75 psf, moderating from the 11.6% annual growth recorded in Q4-2016. At an average of $1,993, monthly rent levels held steady from the record high reached during the previous quarter. Excluding the impact of new units, same sample annual rent growth was 5.5%, down from 6.8% in Q4-2016.

New Condo Sales Hit New Highs

A total of 6,677 new condominium apartments were sold across the Greater Toronto Area in Q3-2016, soaring 73% year-over-year to reach the highest level of third quarter activity on record. Sales were 58% higher than the 10-year average for Q3 periods and 12% higher than the previous high set in Q3-2007. Total unsold inventory in development plunged by 33% from a year ago to 11,485 — the lowest level since the first quarter of 2007 and representing a record low 5.2 months of supply.

Condo Rents Jump 9% as Supply Falls to 5-Year Low

The number of condo apartments rented through the MLS system during Q3-2016 in the Greater Toronto Area declined by 9% from a record high last year to 7,651 units. Activity was held back by a 13% drop in listings as the number of units in new projects registered during the quarter declined by 30% year-over-year. The ratio of leases-to-listings hit a new high of 89% while available listings at the end of the quarter fell to a more than five-year low of 930 units.

Urbanation Review of CMHC Investor Survey Results

We at Urbanation are always very excited to learn of new data releases relating to Toronto condo investors. While we have our own methodologies to approximate the share of new condos purchased by investors, and can track the flow of newly built units into the resale and rental markets upon completion, there is very little data available on the investors themselves -- who they are and their motivations.