NEWS RELEASE



TREB Releases Q3 Rental Market Figures Reported By GTA REALTORS®

TORONTO, October 23, 2017 -- 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