Canada's Condominium Magazine
The average rent for one-bedroom condo apartments is up to $1995, an 11.4 percent increase for the first quarter of 2018, as compared to last year. Meanwhile the high-demand two-bedroom condominium apartment rentals jumped 9.1 percent to an average of $2653. According to the latest data from CMHC and TREB, most market areas are up for rentals in the GTA area, even compared to the hot market of a year ago.
“The GTA continues to be one of the most desirable locations to live in the world and will remain so over the long term,” said Toronto Real Estate Board President Tim Syrianos. “As people have moved to the region to take advantage of quality employment opportunities, rental demand has remained strong. The result has been heightened competition between renters, in an ultra-low vacancy environment, and double-digit rent growth in some market segments.”
Other factors feeding demand are almost certainly the high prices of real estate in the GTA. With many buyers of homes in “wait and see” mode, many are looking to rent for now. Others, simply can’t qualify under new mortgage rules, and are forced to consider renting for now.
Meanwhile, the number “of condominium apartments listed during the first quarter was down 11.8 per cent compared to Q1 2017. The total number of units leased was down 7.5 per cent.” This amounts to a vacancy rate of virtually one percent, far below demand. As a result, TREB indicates that fewer lease agreements have been signed in the period.
Jason Mercer, TREB’s Director of Market Analysis, explains:
“The low-vacancy, high rent growth situation that has unfolded in the GTA over the past year will be further exacerbated by the rent control provisions contained in the Fair Housing Plan. Some investors who, previously would have considered investing in rental units may now look elsewhere for returns on their money. This does not bode well for a sustained increase in rental supply over the long term.”