The Toronto Real Estate Board announced that average rents for one-bedroom and two-bedroom condo and loft rental units were up well above the rate of inflation on a year-over-year basis in the first quarter of 2018.
The average rent for one-bedroom Toronto condo or loft was up 11.4% on an annual basis to $1,995. The average two-bedroom Toronto condo or loft rent was up by 9.1% over the same time period to $2,653.
Toronto continues to be one of the most desirable locations to live in the world and will remain so over the long term. As people have moved to Toronto to take advantage of quality employment opportunities, rental demand has remained strong. The result has been heightened competition between renters, in an ultra-low vacancy environment, and double-digit rent growth in some market segments.
The number of condo and lofts listed for rent during the first quarter was down 11.8% compared to Q1 2017. The total number of units leased was down 7.5%. With a vacancy rate hovering at one percent for condos and lofts, there has been less supply available to would-be renters, which has resulted in fewer lease agreements being signed.
The low-vacancy, high rent growth situation that has unfolded in Toronto over the past year will be further exacerbated by the rent control provisions contained in the Fair Housing Plan. Some investors who previously would have considered investing in rental units may now look elsewhere for returns on their money. This does not bode well for a sustained increase in rental supply over the long term.
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at firstname.lastname@example.org
“Toronto’s Condo Authority”