GTA Realtors® Release Q4 2016 Rental Market Stats

TORONTO, ONTARIO, January 26, 2017 – Toronto Real Estate Board President Larry Cerqua announced continued tightening in the GTA condominium apartment rental market in the fourth quarter of 2016. Greater Toronto Area REALTORS® reported 5,717 condominium apartment rental transactions through TREB’s MLS® System during the last three months of 2016 – down 5.8 per cent compared to the same period in 2015.

Rental transactions were down because of a lack of units available for rent, not because of declining demand. The number of condo apartments listed for rent during the fourth quarter of 2016 shrank by more than 14 per cent to 9,545.

“We have talked a lot over the past year about a lack of inventory for ownership housing. What is less well known is the fact that rental market conditions also tightened over the past year. Competition between renters has increased, leading to very strong year-over year growth in average rents,” said Mr. Cerqua.

The average one-bedroom condo apartment rent was $1,776, representing an annual increase of 7.4 per cent compared to the fourth quarter of 2015. Over the same period, two-bedroom rents increased by eight per cent to $2,415.

“The demand for rental accommodation has increased in the GTA. The condominium apartment vacancy rate dropped markedly between 2015 and 2016. In many parts of the GTA, investor-owned condo apartments are the only option for renters looking for new, modern units in sought-after neighbourhoods. In the absence of more units coming available, expect above-inflation rent growth to continue,” said Jason Mercer, TREB’s Director of Market Analysis.

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Source: Toronto Real Estate Board