(Source: Market Watch)
During the latest reporting period, TREB Members reported 5,673 leased transactions, up 32 per cent from the 4,286 recorded during the same time period in 2008.
However, while volume increased, average rents fell in most categories. For example, one bedroom apartments rented for an average of $1,439 per month, down 4 per cent from the $1,494 recorded during same period last year.
Two bedroom apartment units rented for an average of $1,873, down 1 per cent from the $1,885 recorded during the May to August 2008 period.
A steep increase in rental listings explains the year-to-year decline in rents. At the end of August, 9,781 rental condominium listings appeared on the TorontoMLS system, a 51 per cent increase over the 6,482 listings available at the end of the May-August 2008 period.
The ratio of rental transactions to available properties is much lower than in 2008 meaning the choice of properties has increased causing average rents to moderate.
A key factor behind the increase in rental listings was the strong growth in condominium apartment completions in 2008, as reported by The Canada Mortgage and Housing Corporation’.
Condominium apartment completions increased by 70 per cent in the GTA compared to 2007. Many of these will have been registered under condominium corporations and have become available for rent.
Read the full report here (October 5, 2009).