Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q1-2014 rental market results today.
The number of condo apartments rented through the MLS system in the Toronto CMA grew by 13.5% in the first quarter to a record Q1 level of 4,448 units — building off the 31% annual growth recorded a year earlier. Rents grew by a more moderate pace of 0.5% annually to an average of $2.35 psf, following annual growth of 3.5% during the previous quarter. The average monthly rent slipped by 1.7% year-over-year to $1,824 as the average unit size rented declined by 2.3% to 778 sf.
For the fourth consecutive quarter, annual growth in rental listings (+19% to 6,352 units) outpaced growth in transactions, leading to slightly more balanced market conditions. The first quarter leases-to-listings ratio was 70%, compared to 73% in Q1-2013. The number of active listings at the end of the quarter increased by 31% to 1,367 units from a three-year low last year, but still represented only one month of supply.
“The rising number of recently completed units offered for rent continues to be met with exceptionally strong demand. Although competition among landlords has increased since last year, the market is still in their favour and supportive of rent growth” said Shaun Hildebrand, Urbanation’s Senior Vice President.