Toronto continues to build upward and its rental prices are following in the same direction. Urbanation released their Q1-2013 rental market results and the numbers regarding condo rentals are staggering. Rental transactions, listings and prices have gone up, up and up.
A total of 3,919 condos were leased in the first quarter of the year on the MLS system, up by 31 per cent from just a year ago. All the market flurry has pushed prices up as the amount of rental listings was outpaced by the growth of people looking to sign a lease.
The average index rent climbed 4.4 per cent higher from last year to a record $1,856 per month or $2.33 per square foot.
In the last two years alone, condo rents have risen by more than 10 percent, meaning property investors have been collecting an extra $170 per month or 23 cents per square foot on average.
“Investors are increasingly choosing to hold their units rather than flip them for sale. For the first time in a while, rents are rising faster than prices,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
Units listed for rent on MLS also grew by 19 per cent in the first quarter compared to the same time in 2012. In total, 4,859 condo apartments were registered (the second highest quarterly total of the past four years) and 13 per cent of those units were rented out during that time frame. Less than 2 per cent were resold.
Hildebrand suggests that with the introduction of new mortgage rules in 2012, and fewer first-time buyers buying property, the rental market for condos has stayed hot.