TORONTO, Oct. 23, 2017 (GLOBE NEWSWIRE) -- Toronto Real Estate Board President Tim Syrianos announced that year-over-year increases in average rents for condominium apartments were up very strongly in the third quarter, based on rental transactions reported by Greater Toronto REALTORS® through TREB’s MLS® System.
The average rent for one-bedroom condominium apartments in the TREB market area was up by 11.2 per cent on an annual basis to $1,976 in Q3 2017. The average two-bedroom condominium apartment rent was up by 7.7 per cent over the same period to $2,607.
“Competition between renters remained very strong for available units in Q3. It is clear that supply is part of the issue. Different levels of government have committed to looking at housing supply through the policy lens. TREB has participated in these policy discussions and looks forward to continuing the dialogue. To this end, TREB does have concerns that increased rent controls and a possible vacancy tax in the City of Toronto could serve to reduce the supply of available rental units as potential investors look to less-regulated sectors in which to invest,” said Mr. Syrianos.
The number of condominium apartments listed during the third quarter and the number of rental agreements signed were down by similar amounts on a year-over-year basis.
“It is reasonable to assume that the vacancy rate for condominium apartments has trended lower this year. If the current relationship between rental demand and supply remains in place moving forward, rent increases for available units will continue to trend well-above the rate of inflation. Economic and demographic trends suggest that rental demand will increase and there are real concerns that the already constrained supply of units for rent could get worse,” said Jason Mercer, TREB’s Director of Market Analysis.
| Rental Market Summary: Third 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 | |||||
| Q3 2017 | 11,574 | 8,716 | 316 | $1,672 | 4,850 | $1,976 | 3,350 | $2,607 | 200 | $3,234 | ||||
| Q3 2016 | 12,040 | 9,150 | 377 | $1,489 | 5,256 | $1,777 | 3,328 | $2,420 | 189 | $3,058 | ||||
| Yr./Yr. % Chg. | -3.9% | -4.7% | -16.2% | 12.3% | -7.7% | 11.2% | 0.7% | 7.7% | 5.8% | 5.7% | ||||
| 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 | |||||
| Q3 2017 | 1,022 | 657 | 2 | $1,600 | 87 | $1,783 | 229 | $2,138 | 339 | $2,393 | ||||
| Q3 2016 | 944 | 604 | 3 | $1,375 | 54 | $1,537 | 217 | $2,142 | 330 | $2,176 | ||||
| Yr./Yr. % Chg. | 8.3% | 8.8% | -33.3% | 16.4% | 61.1% | 16.0% | 5.5% | -0.2% | 2.7% | 10.0% | ||||
| Source: Toronto Real Estate Board | ||||||||||||||
Media Inquiries: Mary Gallagher, Senior Manager Public Affairs (416) 443-8158 maryg@trebnet.com
Over 49,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. 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®. TREB is Canada’s largest real estate board.
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