GTA REALTORS® Release Q2 Rental Market Statistics – Press Release

TORONTO, July 24, 2017 (GLOBE NEWSWIRE) — Toronto Real Estate Board President Tim Syrianos announced the continuation of very tight conditions in the condominium apartment rental market in the second quarter of 2017.

The number of rental transactions reported through TREB’s MLS® System remained in line with Q2 2016, levels while the number of units listed at some point during the quarter declined year-over-year.  Average annual rates of rent growth for one- and two-bedroom condominium apartments were over eight per cent.

“The Greater Toronto Area continues to be a very attractive place to live for many people, some of whom choose to rent.  While rental demand remained very strong from a historic perspective in the second quarter, the supply of available rental units remained constrained and average rents continued to grow well-above current and expected future rates of inflation,” said Mr. Syrianos.

“It is clear that we continue to suffer from a lack of available rental units.  The Fair Housing Plan announced by the Government of Ontario committed to measures designed to increase housing supply.  Conversely, the Fair Housing Plan also expanded rent controls, which could preclude investment in rental properties, thereby further constricting supply.  With different policy components potentially at odds, it will be interesting to see the eventual impact of the Fair Housing Plan on the rental market in the GTA,” continued Mr. Syrianos.

The average one-bedroom condominium apartment rent was up by 8.8 per cent year-over-year in the second quarter to $1,861 per month.  The average two-bedroom rent was up by 8.7 per cent to $2,533.

“Competition between would-be renters increased in the second quarter of this year relative to the same time period in 2016.  This meant that average rents increased by much more than the rate of inflation.  In addition, the annual pace of rent growth also increased compared to Q2 2016, reflecting the fact that, generally speaking, it has become harder to find a place to rent this year compared to last,” said Jason Mercer, TREB’s Director of Market Analysis.

Rental Market Summary: Second Quarter 2017      
Apartments                  
  All Bedroom
Types
Bachelor One-Bedroom Two-Bedroom Three-Bedroom
  Listed Leased Leased Avg.
Rent
Leased Avg.
Rent
Leased Avg.
Rent
Leased Avg.
Rent
                     
Q2 2017 11,890   8,553   273   $ 1,551   5,027   $ 1,861   3,071   $ 2,533   182   $ 3,148  
Q2 2016 12,276   8,560   277   $ 1,425   4,953   $ 1,710   3,138   $ 2,331   192   $ 3,046  
Yr./Yr. % Chg. -3.1 % -0.1 % -1.4 %   8.8 % 1.5 %   8.8 % -2.1 %   8.7 % -5.2 %   3.4 %
                     
Townhouses                  
  All Bedroom
Types
Bachelor One-Bedroom Two-Bedroom Three-Bedroom
  Listed Leased Leased Avg.
Rent
Leased Avg.
Rent
Leased Avg.
Rent
Leased Avg.
Rent
                     
Q2 2017 956   613   4   $ 1,169   52   $ 1,767   239   $ 2,092   318   $ 2,415  
Q2 2016 939   570   2   $ 1,350   54   $ 1,558   226   $ 1,903   288   $ 2,194  
Yr./Yr. % Chg. 1.8 % 7.5 % 100.0 %   -13.4 % -3.7 %   13.4 % 5.8 %   10.0 % 10.4 %   10.1 %
                     
Source: Toronto Real Estate Board                

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service®. Over 48,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area.  TREB  is Canada’s largest real estate board. 

Media Inquiries:  
Mary Gallagher, Senior Manager Public Affairs  
(416) 443-8158 maryg@trebnet.com

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