Toronto Real Estate Board President Paul Etherington announced that fourth quarter 2014 condo rental transactions though the Toronto MLS system were up by 17% to 5,036 compared to the fourth quarter of 2013. Over the same period, the number of condos listed on Toronto MLS was also up, but by a lesser annual rate.

Comment: Note, there is no glut. Demand is increasing as supply is decreasing. This does not support a decrease in rents. Which indicates that investors will not abandon the condo rental market.

“We have seen record condo completions over the last two years. Many of these new apartments are owned by investors who have chosen to rent them out. The increased supply of rental condos has been met by increased demand for these units, as renter households turn to the condo segment to find modern units in popular neighbourhoods,” said Mr. Etherington.

Comment: Not that many according to CMHC, less than 5%.

“Increased rental demand has resulted from steady population growth in the Greater Toronto Area, as newcomers have been attracted to the region by its economic and ethno-cultural diversity,” continued Etherington.

Comment: Over 30,000 new households created last year, they all need somewhere to live, to buy or to rent.

Average rents for popular one-bedroom and two-bedroom apartments were basically flat in the fourth quarter when compared to the same period in 2013. The average one-bedroom rent was up by $10 year-over-year to $1609. Over the same period, the average two-bedroom rent remained the same.

Comment: Even with all the new condos being built and completed, and the ever-increasing number of condos being rented and available for rent – the rental prices are NOT going down. That just shows how strong demand is.

“Average rents can be influenced by both changes in market conditions and changes in the type and geography of apartments rented from one period to the next. Over the next few months, if we continue to see the growth in rental transactions outstrip the growth in units listed for rent, we will likely see a new upward trend in average rents,” said Jason Mercer, TREB’s Director of Market Analysis.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto real estate agent with Century 21 Regal Realty.
He did not write these articles, he just reproduces them here for people who
are interested in Toronto real estate. He does not work for any builders.
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