Photo: James Paolo/Flickr
According to Urbanation, 4,938 condo apartments were rented through MLS in the GTA in the first quarter of 2015, a year-over-year increase of 11 per cent. However, leases couldn’t keep up with the listings, which rose 21 per cent over the same period in 2014. The ratio of leases-to-listings dropped from 70 per cent in Q1-2014 to 64 per cent in the past quarter.
The surge in listings is due to the significant uptick in new stock. In the first quarter, condo completions and registrations rose 42 per cent, year-over-year. The jump echoes TD Economics’ recent report on Toronto’s condo market, which found condo completions in the GTA were three times the historical average in both January and February 2015.
Will Toronto renters see in an easing in prices thanks to the boost in supply? The average monthly rent is still trending downward, largely due to shrinking condo sizes. Monthly rent dropped to $1,790, the lowest average in the last three years, as unit sizes shrank by 22 square feet to the new average of 756 square feet.
Currently, GTA condos are priced at an average of $2.37 per square foot, a 1.1 per cent increase over last year. Urbanation noted that rental price growth has hovered around 1 per cent since the start of 2014.
“The condo rental market has become more competitive on the supply side in an effort to keep vacancies low,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in a news release.
“Record levels of rental demand are helping to keep overall rents stable and market conditions balanced, although some moderate downward adjustments to rents have been noted in a few key areas of high supply growth.”