Photo: Sameer Vasta/Flickr
A record number of condos were rented through the MLS system in the Toronto CMA last quarter. According to Urbanation, the tally grew by 13.5 per cent to a new high of 4,448 units — building off the 31 per cent annual growth recorded a year earlier.
As far as pricing is concerned, rents didn’t see the same increases as the previous quarter. They grew at a pace of 0.5 per cent annually to an average of $2.35 per square foot. However, in Q4 2013, rents saw 3.5 per cent annual growth.
The average monthly rent saw a slight decrease, dropping by 1.7 per cent from 2013 to $1,824. The decline is partly blamed on shrinking units, with the average size of a suite falling by 2.3 per cent to 778-square feet in size.
At least one part of the Toronto real estate universe appears to be headed towards slightly more balanced territory. The first quarter of 2014 was also the fourth consecutive quarter where the annual growth in transactions fell behind rental listings, which measured a 19 per cent jump to 6,352 units in the city.
The leases-to-listings ratio was 70 per cent, compared to 73 per cent the same time in 2013. The number of active listings at the end of the quarter also increased, rising by 31 per cent to 1,367 units from a three-year low last year, but still represented only one month of supply.
Does that mean renters will find a bit of relief?
“The rising number of recently completed units offered for rent continues to be met with exceptionally strong demand,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
“Although competition among landlords has increased since last year, the market is still in their favour and supportive of rent growth.”