There were 5.8 per cent fewer condominium rental transactions in the fourth quarter of 2016 compared to the same time in 2015 – but according to the Toronto Real Estate Board, this is due to a tightening supply and not a decline in demand.
“We have talked a lot over the past year about a lack of inventory for ownership housing,” said the president of the Toronto Real Estate Board, Larry Cerqua, in a press release. “What is less well known is the fact that rental market conditions also tightened over the past year. Competition between renters has increased, leading to very strong year-over-year growth in average rents.”
The average rent for a one-bedroom condo was $1,776, and the average rent for a two-bedroom condo was $2,415.
This represents an increase of 7.4 per cent and 8 per cent, respectively.
Jason Mercer, the Toronto Real Estate Board’s Director of Market Analysis, said that, “The demand for rental accommodation has increased in the GTA. The condominium apartment vacancy rate dropped markedly between 2015 and 2016. In many parts of the GTA, investor-owned condo apartments are the only option for renters looking for new, modern units in sought-after neighbourhoods. In the absence of more units coming available, expect above-inflation rent growth to continue.”