TORONTO, ONTARIO--(Marketwired - Oct. 24, 2016) - Toronto Real Estate Board President Larry Cerqua announced that the number of lease agreements signed for condominium apartments listed on TREB's MLS® System was down by 4.8 per cent on a year-over-year basis to 9,164 in the third quarter of 2016 compared to 9,629 a year earlier. Over the same period, the number of condominium apartments listed for rent was down by a greater annual rate of 17.3 per cent.
"Demand remains very strong for condominium apartments in the Greater Toronto Area. The key issue in the third quarter was the fact that there was a pronounced decline in the number of units available for rent. The dip in the supply of available rental units can be attributed, at least in part, to fewer condominium project completions during the first three quarters of 2016 compared to last year. This suggests that there were fewer newly completed investor-held units available for rent," said Mr. Cerqua.
Average one-bedroom and two-bedroom condominium apartment rents were up substantially in the third quarter compared to 2015. The average one-bedroom rent was up by 7.2 per cent to $1,777. The average two-bedroom rent was up by 7.9 per cent to $2,419.
"Conditions in the condominium apartment rental market tightened substantially in the third quarter, with listings down on a much greater basis relative to rental transactions. This means that competition between renters was enhanced, which fed through into average rent increases well-above the rate of inflation," said Jason Mercer, the TREB's Director of Market Analysis.
| Rental Market Summary: Third Quarter 2016 | ||||||||||
| 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 2016 | 12,093 | 9,164 | 377 | $1,488 | 5,265 | $1,777 | 3,333 | $2,419 | 189 | $3,058 |
| Q3 2015 | 14,622 | 9,629 | 324 | $1,375 | 5,486 | $1,657 | 3,610 | $2,241 | 209 | $2,693 |
| Yr./Yr. %Chg. | -17.3% | -4.8% | 16.4% | 8.3% | -4.0% | 7.2% | -7.7% | 7.9% | -9.6% | 13.6% |
| 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 | |
| Q3,2016 | 945 | 604 | 3 | $1,375 | 54 | $1,537 | 217 | $2,142 | 330 | $2,176 |
| Q3 2015 | 1,030 | 577 | 3 | $1,292 | 65 | $1,478 | 174 | $1,872 | 335 | $2,066 |
| Yr./Yr. %Chg. | -8.3% | 4.7% | 0.0% | 6.5% | -16.9% | 4.1% | 24.7% | 14.5% | -1.5% | 5.3% |
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