In Toronto, condo rents for studio units are up 11% and up 9.1 per cent on average.
Study finds that rents for condos in Toronto are up 9.1%. One can totally expect them to keep on going up. Reason: The mortgage stress test is going to make it harder for people to buy. This will force a lot of potential home buyers to continue to rent. Add to that the lack of purpose built rental units, which continues to be at an all time low when compared with the number of condos being built. There are only 7,000 apartment units under construction now, only about 2,000 units will come to completion in 2018. That's nowhere near enough to satisfy the level of rental demand in the GTA right now. Most of the rentals continue to come from the condo market.
Among the 5,094 condo units leased through the Multiple Listing Service in the fourth quarter average monthly rents topped $2,166, that's 9.1% year-over-year.
Rent growth happened most rapidly in the core of the city, where prices jumped more than 12%, but renters seeking relief in the 905 suburbs also pushed rents up 8% in those regions. Rents rose fastest for studio apartments, up 11% year over year to an average $1,665 per month. Average rates for one-bedroom and two-bedroom units also rose, up 10% and 8% respectively.
The other major problem: The new provincial rent controls are already having an impact on factors that could make condo renting a less lucrative asset for investors. These new rules are poorly thought out rules that seemed to be thrown together just ahead of the election year. Over time you're going to start seeing fewer condo investors buying them, because it's actually not a great investment any more.