Photo: James Paolo/Flickr
The number of condo apartments rented out in the GTA reached a record high in the second quarter of the year. According to a report released Tuesday by Urbanation, a condo market research company, 8,200 condo apartment suites were rented out, a 22 per cent increase over the same time last year. Condo rental listings also saw double-digit gains, with a 14 per cent boost. That puts the ratio of leases-to-listings at 79 per cent, up from 74 per cent a year earlier.
Though rental price growth inched along slowly for much of 2014, it accelerated this past quarter with the average price reaching a new high of $2.48 per square foot, a 4.6 per cent rise.
The average size of a condo rental dropped to an all-time low of 734 square feet. Despite the shrinking sizes, prices kept rising. The average monthly rent rose 1.7 per cent to $1,817, the first increase in nearly two years.
“Rental demand in Toronto continues to defy expectations,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
“Absorptions have grown in tandem with record levels of condo supply and rents have proven remarkably resilient. It’s actually surprising there hasn’t been more action on the purpose-built.”
Urbanation also tracks purpose-built rental apartments and found that the region has yet to see a significant increase in rental construction. In the second quarter, there were 3,667 units under construction and a total of 9,350 units proposed for development. While the number of apartments under construction has remained slightly above the long-term trend, proposed inventory for Q2-2015 represents a 38 per cent increase over the 6,765 units built since 2005.
In their study of purpose-built rental apartments completed since 2005, the agency found these apartments tended to be bigger than their condo counterparts with an average unit size of 822 square feet. However, costs are slightly lower than condos with the average rent for a market unit coming to $2.34 per square foot.