Increasing supply in the Toronto rental market caused rent growth to moderate in the first quarter of 2014, according to a report released this week by the Toronto Real Estate Board (TREB).
In the first quarter, the number of condo units leased increased by 17.8 per cent compared to the same period in 2013. The number of condo rental units listed on the MLS also rose significantly, climbing 27.7 per cent year-over-year.
One-bedroom units made up approximately 60 per cent of total condo apartment rentals. The average monthly rent for a one-bedroom condo declined by 1.6 per cent to $1,573. Two-bedroom units made up 36 per cent of transactions with the average rent rising 1.9 per cent to $2,155.
“While rental demand has remained strong, and many investor-owned rental units have been absorbed, the increase in supply has given prospective renters more choice,” said Jason Mercer, TREB’s senior manager of market analysis.
TREB’s Central Toronto C01 district saw the most rental activity by far with 3,751 units listed and 1,659 units leased in the first quarter. The area spans Bloor Street south to the waterfront and Yonge Street and Dufferin Street to the east and west, respectively. The average rent for a one-bedroom in this area was $1,750, higher than the citywide average but slightly lower than the average rent in the first quarter of 2013 for that area.
We took a closer look at the number of units listed versus the number of units leased in C01 during the first quarter back to 2012. Have a look:
Looking for more market reporting? Check out what Re/Max had to say about Canada’s housing market prospects for spring and summer.