TORONTO, October 18, 2018 – Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® continued to report robust average annual rent increases for condominium apartments during the third quarter 2018 compared to Q3 2017. The overall number of lease transactions for condominium apartments was also up by 5.8 per cent year-over-year to 9,215 in Q3 2018.
“Sustained population growth and low unemployment continued to drive demand for condominium apartment rentals in the GTA in the third quarter. Recent major investment announcements positively impacting the GTA economy will only further cement the demand for rental housing, as people move to the GTA to take advantage of quality job opportunities,” said Mr. Bhaura. “Policy makers, including those running for election at the municipal level, need to identify and fix existing policies that are hampering the ability to bring more rental supply on line. These same policy makers also have to develop new policies that could promote the development of more rental units moving forward,” added Mr. Bhaura.
The average one bedroom condominium apartment rent increased by 9.5 per cent on a year-over-year basis to $2,163 in Q3 2018. The number of one-bedroom condominium apartments leased through TREB’s MLS® system totaled 5,344 – up 10.3 per cent compared to Q3 2017. The average two-bedroom condominium apartment rent increased by 8.3 per cent on a year-over-year basis to $2,822 in Q3 2018. The number of two-bedroom condominium apartments leased through TREB’s MLS® System amounted to 3,289 – a 1.7 per cent decrease compared to Q3 2017.
“Average rents are continuing to increase at annual rates far beyond the rate of inflation in the GTA as rental demand remains very strong relative to the supply of units available. We will need to see a sustained period of time within which growth in the number of rental units listed outstrips growth in the number of units leased before we see the rental market return to balance. Policies like the recently expanded rent control provisions contained in the Fair Housing Plan will hinder sustained growth in the supply of rental units,” said Jason Mercer, TREB’s Director of Market Analysis.rental_report_Q3-2018