Toronto’s Skyrocketing Rental Condo Rates
Here is our weekly editor’s pick of 4 articles that explain what is going on with the current condo rental market in the Greater Toronto Area, and how it happened.
The GTA is facing with rapid growth of rental rates since the second quarter of 2017. According to new data from Urbanation Inc., the rental rates for condominiums have risen to another 11.2% in second quarter of 2018.
The Globe and Mail’s article, Greater Toronto Area condo rental rates shoot up another 11.2 per cent, calculates that now Torontonians will have to pay an extra $367 on a monthly average. They conclude by blaming the current rental demand that has exceeded the low level of rental supply, and the slow rate of new construction for condos.
The study done by Urbanation revealed many interesting statistics about rental pricing. A big takeaway is that the highest rental increase was for studios and one-bedroom units without dens by 12% and above. GTA Condo Rental Prices Keep Going Up, Demand Outweighs by Toronto Storeys also outlines the estimated increase by different cities in the GTA area by providing a rental market summary. A great resource for checking the increment of rental prices in different cities.
Financial Post has an interesting take on this issue where they blame the rental increase to the plummeting of construction of condos. According to their article, Toronto condo rents skyrocket as supply reaches ‘critically low level’, new condo project registrations dropped by 28% to 3,264 units – the lowest in the five years.
Finally, CBC News’s article, Toronto condo rents climb 11% in past year as new mortgage rules lock out buyers, concludes that it has also become harder to purchase a condo as the average annual income that is needed to purchase a condo has gone up by 20%. For more information about the buying market, read the article as it provides with a rough estimate about how much is now needed to own a condo in Toronto.