Urbanation Releases Q2-2013 UrbanRental Report
By Lucas on Aug 20, 2013
On August 19, 2013, Urbanation released their Q2-2013 UrbanRental Report. According to Urbanation’s findings, it looks like the rental condo market is currently the strongest branch of Toronto’s housing market.
Rental supply and demand
During Q2-2013, there were 5,315 condo apartments rented on the MLS system, a 20% increase over the same time last year. The number of condo units listed for rent on the MLS system in Q2-2013 increased by 22%.
This number of condo rental transactions outshined condo sales in both the resale and new housing sector. In Q2-2013, there were 4,689 resales and just 3,903 sales of new condos.
“These results show that in one form or another, demand for condominiums in Toronto remains very stable. The growth in condo rental activity reflects a greater movement of younger households into the core, and a lack of growth in traditional rental supply,” said Senior Vice President of Urbanation, Shaun Hildebrand on their findings.
“Most investors are proving to have longer-term intentions by holding onto their units. While rental yields, in general, have come down for new units, many properties continue to achieve strong returns with almost no vacancies.”
Prices of condo rentals
The average rental price for condos went up 4.1% in Q2-2013, which equals about $2.35 per square foot, or roughly $1,847 a month. So, even though there is a lot of inventory in the Toronto condo rental market, investors haven’t felt pressured to offer competitive rents. The fact that inventory is rising along with prices means that there are still many young professionals, small families, and singles that desire the condo lifestyle.
What do you think about the Toronto condo rental market?
Are you an investor? Do you rent out your condo? What are your reasons? Have you decided to hold onto your condo for another few years to wait for prices to rise again? Are you a would-be investor who is holding out to see where the market goes?
On the other hand, are you currently renting? Do you find the prices fair? When searching for a home to rent, were you happy about the large selection or overwhelmed?
