Thursday, December 1 2022

TORONTO, Oct. 27, 2022 (GLOBE NEWSWIRE) — Double-digit year-over-year rent increases continued to be the norm in the third quarter of 2022. Many potential first-time home buyers being Temporarily sidelined in the Greater Toronto Area (GTA) due to higher borrowing costs, rental demand remained strong in the face of declining supply. Competition for condo rentals has therefore intensified and negotiated rents have increased dramatically.

In Q3 2022, 13,366 condo rental transactions were reported through the Toronto Regional Real Estate Board’s (TRREB) MLS® system, representing a 17.3% decrease from the third quarter 2021. However, similar to the second quarter, the number of rental units listed decreased by a higher annual rate of 25.6%. This means that it has become more difficult for renters to find accommodation to meet their housing needs compared to a year ago.

“Immigration to the GTA as well as non-permanent migration for school and temporary employment have all increased markedly. Add to this the impact of higher borrowing costs on the property market and it becomes clear that demand for rental housing remains strong for the foreseeable future. Investor-owned condos have been an important component of the rental stock for over a decade. However, the decline in rental housing listings over the past year is another warning sign for policy makers that the general lack of housing in the region extends to the rental market as well,” said TRREB Chairman, Kevin Crigger.

The average rent for one-bedroom condominium apartments in the third quarter of 2022 rose 20.4% year-over-year to $2,481. The average rent for two-bedroom apartments at 3,184 increased by 14.5% compared to the same period in 2021.

“Rental housing is an increasingly important piece of the housing puzzle. Although investor-owned condominium units have been an important source of supply, the current tight market conditions and average double-digit rental growth indicate the need for additional purpose-built inventory – the construction of which has default in recent years,” the TRREB said. Chief Market Analyst, Jason Mercer.

Rental market summary: third quarter 2022
Apartments
All room types
Bachelor
Room
Two rooms
3 rooms
Listing Rented Rented Avg.
Lease
Rented Avg.
Lease
Rented Avg.
Lease
Rented Avg.
Lease
Q3 2022 17,371 13,366 596 $2,057 7,432 $2,481 4,908 $3,184 430 $4,139
Q3 2021 23,362 16,154 732 $1,696 9,437 $2,061 5,535 $2,780 450 $3,731
year/year. % Chg. -25.6% -17.3% -18.6% 21.3% -21.2% 20.4% -11.3% 14.5% -4.4% 10.9%
Townhouses
All room types
Bachelor
Room
Two rooms
3 rooms
Listing Rented Rented Avg.
Lease
Rented Avg.
Lease
Rented Avg.
Lease
Rented Avg.
Lease
Q3 2022 1,633 1,050 6 $1,892 94 $2,261 438 $2,864 512 $3,366
Q3 2021 1,718 1,023 8 $1,825 101 $1,911 461 $2,590 453 $2,991
year/year. % Chg. -4.9 2.6% -25.0% 3.7% -6.9% 18.3% -5.0% 10.6% 13.0% 12.6%

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Media inquiries: Genevieve Grant, Manager, Public Affairs [email protected] 416-443-8159

The Toronto Regional Real Estate Board is Canada’s largest real estate board with over 70,000 residential properties and
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