Condo-apartment rental transactions in the third quarter in Canada’s most populous city are up 20.5 per cent from the same time last year, according to data released by the Toronto Real Estate Board last week.
The TREB report shows the number of condos rented through the Multiple Listing Service in the Greater Toronto Area reached 7,868 in the third quarter — an increase largely driven by one-bedroom apartments, which saw rental transactions rise 24.7 per cent compared to the same period last year.
The number of condos listed for rent also increased during the third quarter, rising 11.7 per cent from a year earlier.
TREB’s president, Paul Etherington, said that while many of the condo completions over the past two years have translated into rental listings, it does not mean the city has a glut in supply.
“To the contrary, we actually saw growth in transactions outstrip growth in the number of units listed, suggesting there exists some pent-up demand for condo rentals,” Etherington said.
While average rents for one-bedroom apartments (down by less than one per cent) and two-bedrooms (up by less than one per cent) were little changed compared to last year, TREB’s analysts predict tightened rental market conditions in the GTA could lead to rent increases.
“We could see some renewed upward pressure on average rents moving forward, as competition between renters increases,” said Jason Mercer, TREB’s market analysis director.