A record number of condominium apartments were rented on the MLS system in the second quarter (Q2) of 2013. According to Urbanation Inc.’s Q2 rental market results, 5,315 condo apartments were rented, up 20 per cent from a year ago.

As a result of the increase in demand, average rents rose 4.1 per cent over last year, reaching $2.35 per square foot or $1,847 per month.

“These results show that, in one form or another, demand for condominiums in Toronto remains very stable,” says Urbanation’s senior vice-president, Shaun Hildebrand. “The growth in condo rental activity reflects a greater movement of younger households into the core and a lack of growth in traditional rental supply.”

The number of units listed for rent on the MLS system also increased in Q2, up 22 per from last year. During this period, 92 per cent of the 682 units listed on MLS were rented out.

“Most investors are proving to have longer term intentions by holding onto their units,” says Hildebrand. “While rental yields, in general, have come down for new units, many properties continue to achieve strong returns with almost no vacancies.”