Urbanation Releases its Q3-2013 Toronto Condo Rental Report
By Lucas on Nov 19, 2013
Urbanation, the leading source of condo market intelligence in Toronto, released its Q3-2013 condo rental market report.
In Q3-2013, there were 6,451 condo units rented through the MLS system. This is a 39% increase compared to last year and also a new record! Urbanation is predicting that by the end of 2013, there will be over 20,000 rental transactions this year, which far surpasses 2012’s total of 15,355 and 2011’s total of 13,674.
Supply was able to meet demand, with the number of listings 47% higher than the same time last year. The high number of listings is a result of the large amount of condo projects that have been completed recently. Over the last four quarters, 16,000 units have registered. 4,609 of those units registered in Q3-2013 and 24% of them were rented out in the same quarter.
“We’re seeing some positive early impacts on the market from the increased level of investor-purchased pre-construction condos in recent years. The rapid growth in activity indicates a significant amount of pent-up demand for new rentals, which has allowed rents to move higher and further encourage investors to hold onto their properties” said Shaun Hildebrand, Urbanation’s Senior Vice President.”
“While there are several key drivers that are expected to keep rental transactions in the condo market steady going forward, supply growth is expected to be relatively stronger over the next few years, creating more balanced market conditions and a flatter profile for rents” added Hildebrand.
With a strong demand, the average square footage price went up 4.2% in Q3-2013. reaching $2.41. However, the influx of smaller units in the rental condo market kept the annual growth in overall rents to 1.6%, making the average monthly rent for a condo in Toronto $1,875.
What does a strong rental market mean for homebuyers? Stay tuned - we’ll be discussing that soon!
