The second quarter of the year saw a significant surge in Toronto’s condo rental market. Urbanation’s latest report points to a record high of 5,315 for condos rented on MLS, a 20 per cent climb from the year before.
Demand is pushing up prices with the average rent for a Toronto condo now sitting at $1,847 per month ($2.35 per square foot), a 4.1 per cent hike from the same time last year.
The number of units listed for rent in the second quarter also saw significant gains, growing by 22 per cent from 2012. Out of the 3,652 units that registered in the second quarter, 682 units, or 19 per cent, were listed for rent. And 92 per cent of those suites were rented out during the quarter.
However, the flurry of rental activity is much stronger than sales of condos in the city. New condos sales fell 18 per cent from 2012 to 3,903 and the resale market saw 4,689 transactions, a 7 per cent dip from the year before.
During the first quarter of 2013, the city saw the average rent for a Toronto condo skyrocket to a new high of $1,856 per month or $2.33 per square foot.
“Most investors are proving to have longer-term intentions by holding onto their units,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
“While rental yields, in general, have come down for new units, many properties continue to achieve strong returns with almost no vacancies”