Expect to pay an average of $2K for a new condo rental, data shows
Urbanation data shows that there's still new supply coming on to the market
The average rent for a condo apartment in Toronto jumped above the $2,000 mark for the first time ever in the second quarter of 2017, according to figures released by a real estate consulting firm Friday morning.
The data compiled by Urbanation only includes properties listed and rented through MLS — so it doesn't take into account anything leased through Kijiji or other private listings.
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It does, however, provide a snapshot of the Ontario rental market from April to the end of June and, potentially, how the provincial government's recent rent control measures have affected both supply and demand.
"As the ownership market softened in the weeks following the provincial government's new housing measures … the rental market tightened substantially against a backdrop of already record levels of demand that intensified as some buyers moved to the sidelines, Shaun Hildebrand, Urbanation's senior vice president said in a news release.
He suggested that rent may have jumped as landlords hoped to offset the effect of recent new rent control rules by setting a higher price at the beginning.
The hike, however, did little to cool demand.
The number of condos leased in the second quarter of the year hit 8,328 units — the most in a three-month period since Urbanation began tracking the data in 2011, it said.
Part of that spike came from the fact that there were more listings on the market, up about eight per cent, according to the data.
And more rental units are coming.
Construction still strong
Nine new rental projects were proposed in the city during that time, despite the announcement of rent control.
Developers had warned the province that adopting rent control measures would deter those willing to invest in building more units and create a dearth of supply.
Urbanation found that while proposals for new rental units showed slower growth this spring, the number of units under construction — 5,821 — has jumped.