The number of Greater Toronto Area condo units rented through the MLS system during the second quarter of 2015 surged to a record-setting 8,200, reports Urbanation. This figure represents a 22-per-cent year-over-year increase and a doubling of the growth rate observed during the past few quarters.
Demand outpaced supply growth as total listings increased by 14 per cent over Q2-2014, bringing the leases-to-listings ratio up from 74 per cent last year to 79 per cent. The average condo took 24 days to lease.
Rents also reached a new high, of $2.48 per square foot, as condo rent growth increased to 4.6 per cent after averaging less than one per cent in annual growth since the start of 2014. Same sample rents posted their fastest growth since 2013, increasing by 1.7 per cent. Average monthly rents increased for the first time in almost two years, up 1.7 per cent to $1,817, as average unit sizes dropped to a record low of 734 square feet.
An increased proportion of leases in Toronto’s core affected second quarter results, as a large number (1,807 units) leased within newly registered projects. This signified a 28-per-cent rental turnover, at an average of $2.62 per square foot and a 90-per-cent leases-to-listings ratio.
“Rental demand in Toronto continues to defy expectations,” said Shaun Hildebrand, senior vice president, Urbanation, in a press release. “Absorptions have grown in tandem with record levels of condo supply and rents have proven remarkably resilient. It’s actually surprising there hasn’t been more action on the purpose-built rental development front.”
Urbanation’s second quarter results for purpose-built apartment rentals completed since 2005 showed that the average rent for marketed units sat at $2.34 per square foot, with the average unit size at 822 square feet.
The number of new purpose-built apartment units in development showed little change over the previous quarter. At 3,667, the number of purpose-built units under construction represent a slight increase over long-term trends. The 9,350 units proposed for development represent a 38-per-cent jump over the 6,765 units built since 2005. Purpose-built units make up three per cent of total apartments proposed for development.