The latest news coming out of the Toronto Real Estate Rental Market is that the market is on FIRE!!! Landlords are rejoicing, tenants are scrambling to get anything to live in, no matter the cost, and the government intervention has done nothing but to stoke the fire to burn faster and hotter. From my own personal front lines experience with our clients, the landlords are writing their own tickets, and throwing out past performances and are setting new record level rent prices. Gone are the days are comparison pricing, tenants have to take what is offered, and they are lucky to even find anything. Supply is shrinking, demand is through the roof, and what the future holds will be higher and higher prices.
Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® continued to report strong average rent increases for GTA condominium apartments rented through TREB’s MLS® System in the second quarter of 2018 relative to Q2 2017. “The demand for condominium apartment rentals remained strong compared to the number of units available for rent. Current market conditions point to the fact that renters have little choice when it comes to finding a place to live. Governments need to look at ways to increase the supply of rental accommodation, both in terms of purpose-built rental properties and individual investor-held units. This would go a long way to easing the pace of rent growth in the GTA,” said Mr. Bhaura. The average one-bedroom condominium apartment rent increased by 10.4 per cent on a yearover-year basis to $2,055 in Q2 2018. The number of one-bedroom condominium apartments rented through TREB’s MLS® System amounted to 4,879 – a 2.9 per cent decrease compared to Q2 2017. The average two-bedroom condominium apartment rent increased by 8.8 per cent on a year-overyear basis to $2,755 in Q2 2018. The number of two-bedroom condominium apartments rented through TREB’s MLS® System amounted to 3,104 – a 1.2 per cent increase compared to Q2 2017. “Recent government policy changes, including rent controls, have not alleviated the strong upward pressure on monthly rents for available condominium apartments in the GTA. New, investor-held condominium apartments entering the market have not been enough to provide the needed balance in the condo rental market. As a result, the strong competition between renters continues to sustain double-digit or near-double-digit annual average rent increases,” said Jason Mercer, TREB’s Director of Market Analysis
Knowing the new reality of the rental market. Landlords have to keep pushing this forward before more government intervention, and tenants need to be quick to make decisions, if you miss out on the condo you want, the next one will likely be a higher price. You need to be prepared moving into this market, with all the T’s crossed, I’s dotted, and have your paperwork in order. If you are looking to work with an agent to help you find a property, contact us at firstname.lastname@example.org or 416-913-1089.