Photo: Matthew Burpee/Flickr
We’ve been tracking condo rentals obsessively in the last little while, in large part since the health of the condo market is tied to whether there’s enough rental demand to sustain the sales and busy rate of building. Here’s the latest: Urbanation released their second quarter report looking at GTA condos rented through MLS and found that, altogether, there were 6,708 condo suites rented out in the second quarter, an all-time high.
The amount of listings also broke records, rising up to 9,069 units, or 29 per cent higher than the same time last year. This is the fifth quarter in a row where the growth in listings outpaced the growth in rental transactions.
Supply largely kept rental prices in check. Rent grew by about 0.7 per cent to an average of $2.37 per square foot in the GTA, the second consecutive quarter where rental growth was less than one per cent. In contrast, the average rate of growth was 4 per cent in 2013.
“A surge of new supply from recently registered buildings kept rents in check during the quarter. Although listings are expected to remain strong as more units complete construction, rental demand shows no signs of abating, which should keep rents steady,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
Condos are also getting smaller and smaller, a trend that has kept average rental prices down over the last three quarters. The average rental suite dropped in size by 30 square feet, down 3.8 per cent from last year, to a record low of 755-square feet. Because of declining sizes, the average monthly rent also fell 3.2 per cent to $1,787.
The average rent for new units registered in Q2 and rented through MLS was $2.37 per square foot, or $1,521 at an average unit size of 638-square feet. Among the 5,973 units were registered during the quarter, 18 per cent were rented through the MLS system.
For more details, check out Urbanation’s chart below: