TORONTO – November 15, 2013
Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q3-2013 rental market results today.
For the second straight quarter, the number of condominium apartments rented through the MLS system reached a new record, soaring by 39% from last year to 6,451 units. The total number of transactions for 2013 is set to surpass 20,000 units, which follows 15,355 units in 2012 and 13,674 units in 2011.
Rental demand has been able to keep pace with the strong rise in listings, which were 47% higher than the same time last year. Supply has been driven up by a rising number of completed projects. Over the past four quarters, nearly 16,000 units were registered. Of the 4,609 units registered in Q3-2013, 24% were rented out during the quarter.
On a per square foot basis, average rents grew by 4.2% year-over-year to $2.41. However, a strong inflow of smaller units to the market held annual growth in overall rents to 1.6%, with an average monthly rate of $1,875 in the third quarter.
“We’re seeing some positive early impacts on the market from the increased level of investor-purchased pre-construction condos in recent years. The rapid growth in activity indicates a significant amount of pent-up demand for new rentals, which has allowed rents to move higher and further encourage investors to hold onto their properties” said Shaun Hildebrand, Urbanation’s Senior Vice President.”
“While there are several key drivers that are expected to keep rental transactions in the condo market steady going forward, supply growth is expected to be relatively stronger over the next few years, creating more balanced market conditions and a flatter profile for rents” added Hildebrand.