While some residents are still dealing with 100% rental hikes in Toronto, a new report suggests that annual rental growth was down in the first quarter of 2017.
Urbanation Inc., a leading source of information and analysis on the Toronto condominium market, released its first quarter rental report on Wednesday, stating that the average price per square foot for a GTA condo was $2.75, down from $2.80 in the the fourth quarter of 2016.
As well, the average rent for condos increased by 8.3%, moderating from the 11.6% annual growth recorded in the last quarter of 2016, according to the report. Meanwhile, monthly rent levels held steady at an average of $1,993.
Over 11,000 newly completed condos represented a 33% annualized increase, which stabilized rental listings as turnover of existing condo rentals continued to decline.
“An improvement in condo supply growth alleviated some of the recent pressure on rents,” states the report. This resulted in market conditions showing more balance, and apartment rentals stayed on the market longer in this first quarter at 20 days than in the last quarter of 2016, which was 13 days.
Only 9% of rentals were leased for above asking, which is fewer than the previous quarter’s 17%.
“Although the rental market remained undersupplied in the first quarter, market forces worked together to temper rent increases,” said Shaun Hildebrand, Urbanation’s Senior Vice President in a statement. “A return to previous highs for condo deliveries and a rise in purpose-built rental completions are expected to keep a lid on rent growth over the next few years.”
Hildebrand added that without more meaningful growth in purpose-built rental construction, “even greater supply shortages will likely emerge in the post-2019 period.”
Here’s hoping for that meaningful growth, now that the Province shut down the request for rent control.