Another quarter, another record broken: Urbanation released the results of their third quarter condo rental report and the Toronto market has hit a new high. The number of condos rented through MLS reached 6,451 units, leaping 39 per cent from last year. That’s the second quarter in a row that the city’s broken a rental record. (Tweet this fact)
The entire number of rentals for the city is expected to surpass 20,000 units this year, after hitting 15,355 units in 2012 and 13,674 units in 2011.
Demand has kept up with the significant uptick in listings, which were 47 per cent higher than the same quarter last year. Supply continues to grow with a rising number of completed projects coming online. In the last four quarters, nearly 16,000 units were registered. In the third quarter, 23 per cent of the 4,609 units that registered were rented.
“The rapid growth in activity indicates a significant amount of pent-up demand for new rentals, which has allowed rents to move higher and further encourage investors to hold onto their properties,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
However, conditions could tip towards a more balanced market soon.
“While there are several key drivers that are expected to keep rental transactions in the condo market steady going forward, supply growth is expected to be relatively stronger over the next few years, creating more balanced market conditions and a flatter profile for rents” said Hildebrand.