The Toronto rental market is definitely on fire! It is not uncommon to see bidding wars on condo rental units and from my experience it’s almost easier to buy something in Toronto, then rent…I said almost. It’s not really surprising tenants are willing to pay more per month to have the conveniences of walking to work, restaurants, bars and cafes. Tenants also want to live in newer units with stainless steel appliances, granite countertops and wood floors just like buyers. The building amenities are something that tenants also consider because if the building has a decent gym, it means expensive gym memberships can be canceled. So, yes there may be a lot of new condo buildings being built, but clearly there are a lot of tenants out there willing to rent them for top dollars!
Still in disbelief? Then check out Urbanation’s latest Q2 rental report below…..
TORONTO CONDO RENTAL MARKET
REACHES NEW HEIGHTS
RENTAL TRANSACTIONS AND RENTS CONTINUE TO GROW
TORONTO – August 19, 2013: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q2-2013 rental market results today.
A record high 5,315 condominium apartments were rented on the MLS system during the second quarter of 2013, up by 20% from a year ago. Demand was able to keep pace with a surge of listings, driving average rents up by 4.1% from last year to $2.35 per square foot, or $1,847 per month.
Rental transactions continued to eclipse sales of condominium apartment units in both the resale market (4,689 units) and new home market (3,903 units) in the second quarter.
“These results show that in one form or another, demand for condominiums in Toronto remains very stable. The growth in condo rental activity reflects a greater movement of younger households into the core, and a lack of growth in traditional rental supply” said Shaun Hildebrand, Urbanation’s Senior Vice President.”
The number of units listed for rent on the MLS system in the second quarter grew by 22% from last year. Out of the 3,652 units that registered in Q2-2013, 682 units (19%) were listed for rent, 92% of which were rented out during the quarter.
“Most investors are proving to have longer-term intentions by holding onto their units. While rental yields, in general, have come down for new units, many properties continue to achieve strong returns with almost no vacancies” 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 isUrbanRental, 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.
With numbers like these, condo bubble what? As mentioned in the report above, investors are realizing the cash flow potential in renting their condos instead of selling. Of course the numbers are not the complete picture and there are other factors to consider.
So if you’re thinking about renting your Toronto condo, give me a call so we can over everything step by step to ensure it’s the right decision for you 1-416-707-1209
Landlord for the first time? Then click, Thinking Of Renting Your Toronto Condo