TORONTO – October 9, 2014: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q3-2014 rental market results today.
The number of condo apartments rented through the MLS system in the Greater Toronto Area reached a record high for the second consecutive quarter at 7,132 units, 10% higher than a year ago. Growth moderated compared to the 20% annual rate recorded during the first half of the year and represented the slowest pace in two years.
The third quarter routinely represents the highest period of rental activity during the year. After seasonally adjusting the data, there was a slight decline of 2.5% in the number of rentals from the previous quarter.
The reduced rate of growth in rentals was largely attributed to a dip in listings in Q3, which fell back from their record high in the second quarter to 8,961 units. Listings were held back during the quarter by fewer new project registrations.
Rents grew by 1.2% year-over-year to an average of $2.44 psf in the third quarter. Rent growth edged higher following first half growth of less than 1% as market conditions tightened with less supply competition. The absolute average monthly rent was $1,870, virtually unchanged from last year. Monthly rents stabilized after experiencing annual declines in the first half as the average unit size rented increased to 767 sf from a record low of 755 sf in the previous quarter.
“Rental activity is heading towards a more sustainable pace as demand levels-out following extremely high rates of growth in previous quarters. With the fundamentals such as immigration, population and employment growth in Toronto recently slowing while condo completions move higher, rents can be expected to stay flat over the next year, although remain supported by still low rates of vacancy” said Shaun Hildebrand, Urbanation’s Senior Vice President.