If you’re pounding the pavement looking for a new apartment, then you might not want to look at the new numbers released by Urbanation. It’s definitely a landlord’s market in Toronto and the city would need to gain a whopping 3,500 extra listings to tip the market in favour of lease-holders, according to Ben Myers, the Executive Vice President at Urbanation.
“The rental condominium market remains under supplied, and even if record condominium completions are realized in 2013, Urbanation expects the rental market to remains strong for at least the next 15 to 18 months,” he said in the press release.
Demand for investor-held rentals remains really, really strong. Despite the 11 per cent boost in rental condominium listings, the Lease-to-Listings Ratio (LLR) increased year-over-year from 64.8 per cent in the fourth quarter of 2011 to 66.5 per cent in the fourth quarter of 2012.
The amount of rental transaction has, unsurprisingly, seen a good boost as well. In the fourth quarter of 2012, Toronto saw 3,292 rental transactions take place. That’s a 13 per cent year-over-year increase from 2,902 compared to the same quarter in 2011. Index rents also climbed up 3.2 per cent annually, bringing the average rent to $1,836 a month for a 803-square foot space.
Compared to the resale condo market, rentals for similar properties are far more robust. The amount of registered unfurnished condominium apartments leased through the Toronto Real Estate Board (15,355) eclipsed those that were resold (15,292).
So if you just bought a condo as an investment property, it looks like you won’t have much trouble finding renters. To see the top-selling new condos in the city, check out the list that Urbanation came out with in January. And be sure to peruse their 2012 condo market overview here.