TORONTO – April 15, 2015: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its first quarter condo rental market results for 2015 today and introduced a new survey of the purpose-built rental market.
The number of condo apartments rented through the MLS system during Q1-2015 in the Greater Toronto Area grew 11% year-over-year to 4,938 units, a pace consistent with the previous two quarters. Total listings grew twice as fast (+21% y/y), driven by a 42% annual jump in the number of newly completed and registered condo units during the period. The ratio of leases-to-listings declined to 64% from 70% a year earlier.
Average condo apartment rents grew by 1.1% year-over-year to $2.37 per sq. ft across the GTA. Rent growth has remained at or below roughly 1% since the beginning of 2014, with same sample per sq. ft. rents increasing by 0.4% annually in the first quarter. The average monthly rent level continued its downward trend on account of shrinking unit sizes, declining by 1.8% annually to $1,790 — the lowest level in three years. The average size of units rented fell by 22 sf to 756 sf.
“The condo rental market has become more competitive on the supply side in an effort to keep vacancies low”, said Shaun Hildebrand, Urbanation’s Senior Vice President. “Record levels of rental demand are helping to keep overall rents stable and market conditions balanced, although some moderate downward adjustments to rents have been noted in a few key areas of high supply growth,” added Hildebrand.
Purpose-built Rental Survey
Due to the growing interest for purpose-built development, Urbanation undertook a new survey of each rental project completed since 2005 across the GTA, totaling 34 buildings and 6,723 units. The average index rent across the market sample was $2.38 psf, virtually identical to the condo rental market at slightly larger average unit sizes of 800 sf.
In terms of new developments, Urbanation tracked eight buildings totaling 2,458 units that are under construction and set for completion by the end of next year. Additionally, 37 buildings with a total of 9,207 units are proposed for development. As a result, the current development pipeline of under construction and proposed units represents growth of 75% compared to the number of purpose-built units constructed over the past 10 years.
Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. The UrbanRental report tracks activity in the condominium rental market, and now the new purpose-built rental market. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.
www.urbanation.ca Media Contact: Shaun Hildebrand
416 922 2200