TORONTO, February 5, 2009 – Between September 1, 2008 and
December 31, 2008, Toronto Real Estate Board (TREB) Members reported
3,433 rented condominium apartments and townhouses in the
Greater Toronto Area.
This represented a 30 per cent increase over the 2,635 transactions recorded during the same time frame in 2007. A good part of this increase likely came from rental listings in newly completed
condominium apartment buildings containing investor-owned units.
“The increasing strength of the rental market combined with low interest rates and reasonable home prices mean that now could be an excellent time to purchase an investment property,” said Maureen O’Neill, President, Toronto Real Estate Board.
“Given the demand for rental units, tenants can cover some of the owner’s operating costs for an investment property, while property owners look forward to a healthy return in owner’s equity in the longterm.”
Condominium apartment rents on an annual basis rose for one,two, and three bedroom types during the September to December period. Two bedroom units, for example, rose two per cent to $1,895 per month.
Annual average rent increases were noted for one-bedroom townhouses.
TREB’s Central Area once again proved the most active for GTA rentals, with 2,052 units rented during
the September to December period, up 37% from the same time in 2007.
In the C01 and C08 districts rental units in several newly completed buildings accounted for a large portion of the increase.Of the apartments rented, 1,175 were one-bedroom units which rented for an average of $1,550 per month,and 721 were two-bedroom units that rented for anaverage of $2,141 per month. Of the 64 condominium townhouses rented, 29 were three-bedroom units
that rented for an average of $2,855 per month.
Rental Transactions By District
East Area
• 264 condominium apartments and townhouses rented over the course of the last reporting period, up 11 per cent over the 2007 figure of 238.
• 229 condominium apartments were rented, up two percent compared to last year. Average two-bedroom rents
increased four per cent to $1,501 per month. Average three-bedroom rents were up five per cent to $1,578 per month.
• Townhouse transactions almost tripled to 35 units leased. Of these, 27 were three-bedroom suites which rented for an average of $1,406 per month.
North Area
• 280 total condominium apartment and townhouse rental transactions occurred in TREB’s North districts, up seven per cent over the last four months of 2007.
• Of the units rented, 236 were condominium apartments, up five percent from last year. Average rents rose in all catagories, with two-bedroom rents up two per cent to $1,739 per month.
• 44 townhouse units were rented, up 16 percent. Most transactions for three-bedroom units with an average rent of $1,633 per month, down three per cent compared to last year.
West Area
• Transactions rose 30% to 837 units, due in part to listings near Mississauga City Center.
• 699 condominium apartments were rented, up 33 percent. Average rents trended upward in two out of four categories (one and three bedroom units). Two bedroom rents fell marginally to an average of $1,611 per month.
• The West districts remained TREB’s most active area for townhouse rentals, with 138 leased over the past four months. Two-bedroom units rented for an average of $1,502 per month, down two percent. Three-bedroom units rented for an average of $1,555 per month, down
one percent from last year.
“Investor-owned condominium apartments have become an increasingly important component of the
GTA rental market,” according to Jason Mercer, Senior Manager Market Analysis.
“Very few purpose-built rental apartments have been completed in the GTA over the past few
years. Many renters searching for apartments with modern finishings and amenities have been attracted to rental condominium apartments listed by TREB Members on the TorontoMLS system.”
Visit www.TorontoRealEstateBoard.com for a complete copy of the Rental Market Report.