"Strong condominium apartment completions over the past year resulted in many investor-held units being listed for rent in the second quarter,” said Toronto Real Estate Board President Ann Hannah. “While prospective renters did benefit from more choice compared to last year, market conditions remained tight enough to prompt annual average rent increases above the rate of inflation."
That’s good news for Toronto condo investors, worried about the possible super-saturation or rental units on a slowing market. But they still have some reason to be concerned.
The number of apartments listed for rent in the second quarter grew at a faster pace compared to the number of rental transactions -- up 15 per cent year-over-year.
That suggests rent increases may slow as Canada’s largest city heads in the fall.
Currently, the average two-bedroom apartment rents for $2,088, an increase of 4% over the same period last year.
Still, new mortgage rules suggest that those figures could actually climb as homebuyers find themselves shut out of the pricey condo market and opt to rent instead.
"There have not been a lot of rental buildings completed over the past few years,” said Jason Mercer, TREB's senior manager of market analysis. “Investor-held condominium apartments have filled a void for renters looking for units with modern finishes and amenities located in popular neighbourhoods. With this in mind, it is not surprising that the vacancy rate for condo apartments has been low and average rents have been increasing at a healthy pace."
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate