While July, August and September typically mark the busiest time of the year for landlords and hopeful tenants seeking new digs for the new school year, Urbanation’s latest condo rental market report shows that the leaves weren’t the only thing that fell in the third quarter of 2014.
Condominium units rented through the multiple listing service (MLS) in the Greater Toronto Area reached a record high for a second consecutive quarter, at 7,132 units – up 10 per cent over year-ago levels, but only half the rate that was recorded in the first half of 2014, and the slowest pace of growth in condo rental demand in the last two years.
The condominium market research firm attributes the slowdown to a dip in listings in the third quarter, “which fell back from their record high in the second quarter to 8,961 units,” according to the report. “Listings were held back during the quarter by fewer new project registrations.”
“Rental activity is heading towards a more sustainable pace as demand levels-out following extremely high rates of growth in previous quarters. With the fundamentals such as immigration, population and employment growth in Toronto recently slowing while condo completions move higher, rents can be expected to stay flat over the next year, although remain supported by still low rates of vacancy” said Shaun Hildebrand, Urbanation’s senior vice-president.
Rental market at a glance…
According to Urbanation’s rental market results, rents were up 1.2 per cent year over year, to $2.44 per sq. ft. in the third quarter, at an average of $1,870 per month – on par with last year’s average. Rent growth edged higher following first half growth of less than one per cent as market conditions tightened with less supply competition. The average rental unit size also increased to 767 sq. ft. from a record low of 755 sq. ft. in the Q2.