Greater Toronto Area (GTA) realtors are reporting that rentals of condominium apartments increased 23 per cent in the second quarter of 2013, compared to the same period last year.

Just over 5,850 condominium apartments were rented through the Toronto MLS system in the second quarter. There was also an increase in apartments listed for rent, up 15 per cent to 10,284.

“Condominium apartments rented out by investors have become an increasingly important part of the overall rental stock in the GTA, given that very few purpose-built rental properties have been completed over the last decade,” says Toronto Real Estate Board (TREB) president, Dianne Usher.

Households that want to live in up-to-date units but are not yet ready to buy have increased demand for condo rentals, she continues. Would-be buyers saving for a down payment on a home are also included in the rental pool that is driving demand.

On a year-over-year basis in the second quarter, the average rental price for one-bedroom and two-bedroom condo apartments has increased well over the rate of inflation to $1,611 and $2,174 a month, respectively.

TREB’s senior manager of market analysis, Jason Mercer, says vacancy rates have remained low, which suggests conditions in the GTA tightened over the past year.