Condo rents slow in Toronto

Condo rents are being squeezed by the flow of new supply and smaller units coming onto the market, but conditions still favour the landlord

The average monthly rent for a condo in Toronto has slipped by 1.7 per cent year-over-year to $1,824, with extra supply and small units come onto the market.

According to new data from Urbanation Inc.,the number of condo apartments rented through the MLS system in the Toronto CMA grew by 13.5 per cent in the first quarter of 2014 to 4,448 units - building off the 31% annual growth recorded a year earlier.

Rents grew by a more moderate pace of 0.5 per cent annually to an average of $2.35 per sq. ft., following annual growth of 3.5 per cent during the previous quarter.
The average unit size rented declined by 2.3 per cent to 778 per sq. ft.

“The rising number of recently completed units offered for rent continues to be met with exceptionally strong demand. Although competition among landlords has increased since last year, the market is still in their favour and supportive of rent growth” said Shaun Hildebrand, Urbanation’s Senior Vice President.

For the fourth consecutive quarter, annual growth in listings (+19% to 6,352 units) outpaced growth in transactions, leading to slightly more balanced market conditions.

The leases-to-listings ratio in the first quarter was 70 per cent, down three per cent from the same period last year. The number of active listings at the end of the quarter increased by 31 per cent to 1,367 units from a three-year low last year, but still represented only one month of supply.

Written by Vernon