Toronto’s hot housing market is also affecting leases. With condo lease prices reaching new records and a shortage of available listings, the rental market is as competitive as ever:
2016 Was a big year for rentals in the GTA:
Last year’s fourth quarter saw lease costs rise 11.7%, compared to the same time in 2015. The ‘typical’ condo is 718-sq. ft. and averages $1,990 per month in the GTA.
In Toronto’s city core, condos are renting for an average of $2,134. The inner suburbs of Etobicoke are seeing prices at $1,857, while in the ‘905’ region around the city, average prices are $1,739.
The rental market is dramatically accelerating and tenants are feeling the effects. The average resale home price jumped 17.3 per cent in the GTA in 2016, and condo prices surged 15 per cent.
For the first time in several years, the market is tighter for condo apartments than it is for single-detached homes. There is a shortage of available suites for lease for a few main reasons:
The disparity between the cost of owning and renting has discouraged some tenants from becoming homeowners and those who are currently renting are likely to stay put to avoid paying higher rents elsewhere.
The price of condo apartments is increasing, and this is encouraging many condo owners to sell their units rather than rent. Condominiums are being snatched up by first-time home buyers who are currently priced out of the single-detached market.
When condominium leases are listed, they are going fast. The typical condo spends about 13 days listed on the rental market before finding a tenant. This is a whole week less from the previous year.
Other factors that are affecting the GTA rental market:
The international-student population has doubled in the past six years.
A rising number of Albertans moving to Ontario for work in 2016
An increase of new permanent residents moving into the region
What does the future hold?
Some analysts expect that many of the conditions that fueled the GTA’s hot housing market will subside in 2017, putting less pressure on rentals. Developers are taking note and many are planning to build rentals rather than condominiums – applications for the building of rental apartments have tripled from the same time last year. Major condo development will also ease tight market conditions, with many big projects expected to be completed in the next few years.
Are you interested in buying or selling, or do you simply learning more about the current market? Feel free to call me at 416.921.1112 and have all your questions answered.