TORONTO – August 15, 2014: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q2-2014 rental market results today.
The number of condo apartments rented through the MLS system in the Greater Toronto Area grew by 26% from last year to an all-time high of 6,708 units in the second quarter. Listings also reached a record (9,069 units) and for the fifth consecutive quarter, outpaced the growth in rental transactions by rising 29% year-over-year. Supply competition held annual rent growth to 0.7% to an average of $2.37 psf in the GTA. It was the second straight quarter that rents grew by less than one percent, following an average rate of 4% in 2013.
“A surge of new supply from recently registered buildings kept rents in check during the quarter. Although listings are expected to remain strong as more units complete construction, rental demand shows no signs of abating, which should keep rents steady” said Shaun Hildebrand, Urbanation’s Senior Vice President.
The average unit size rented fell to a record low of 755 sf, down by 3.8%, or 30 sf, from Q2-2013. This led to a nearly equivalent decline in average monthly rent levels to $1,787 (-3.2% year-over-year). Declining unit sizes have pushed monthly rents down over the past three quarters.
Of the 5,973 units registered during the quarter, 18% were rented through the MLS system. The average rent for these new units was $2.37 psf, or $1,521 at an average unit size of 638 sf.