FOR IMMEDIATE RELEASE
TORONTO CONDO RENTAL MARKET STRENGTHENS
growth in leases and rents pick up speed in
the first quarter
TORONTO – May 14, 2013: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q1-2013 rental market results today.
A total of 3,919 condominium apartments were leased in Q1-2013 on the MLS system, up by 31% from a year ago. Growth in rental transactions continued to outpace growth in rental listings, pushing average index rents higher by 4.4% from last year to a record $1,856 per month or $2.33 per square foot.
Over the past two years, rents have risen by more than 10%, equal to an additional $170 per month or 23 cents per square foot on average.
“Demand for renting condos has heated up with less first-time buyers. Rental transactions have exceeded resale volumes in the condo market since mid-2012, when the latest round of mortgage rule changes came into effect” said Shaun Hildebrand, Urbanation’s Senior Vice President.”
Units listed for rent on the MLS system in the first quarter grew by 19% from last year. Out of the 4,859 units that registered in Q1-2013 (the second highest quarterly total of the past four years), 13% were rented out in the quarter, compared to less than 2% that were resold.
“Investors are increasingly choosing to hold their units rather than flip them for sale. For the first time in a while, rents are rising faster than prices,” added Hildebrand.
Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. The newest report from Urbanation is UrbanRental, which tracks activity in the condominium rental market. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.
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