While Toronto has kept its place as one of the country’s hottest housing destinations in terms of activity and costs, the market’s single-detached prices and rental values have not grown in lockstep.
Last month, Toronto’s single-detached home price growth was the strongest since 2017. Data from the Toronto Real Estate Board showed that the market’s benchmark detached price reached $946,700 in September, which was 3.55% higher than the August reading.
The City of Toronto accounted for much of this increase, with the locale’s benchmark going up by 2.74% to end up at $1,135,600 during the same period.
Meanwhile, average surveyed rent for recently leased units in the region went up at the slowest rate in two years. This came amid Toronto’s rental vacancy level remaining at a near-record low of 0.8%.
According to Urbanation, the rate for recently leased units and available units in the GTA stood at $2,515 monthly during Q3 2019, which was 6.1% higher year-over-year, but “essentially unchanged” from the second quarter.
“The results indicate that rent inflation has begun to moderate after a strong escalation in recent years that brought rents up by about 30% compared to three years ago, suggesting that $2,500 per month may represent a near-term resistance level for GTA rental affordability,” Urbanation stated.
“The latest data suggests affordability constraints are impacting market growth for rentals, with renters seeking to save on costs by forming more multi-tenant households and substituting to smaller units and less expensive areas of the GTA,” Urbanation president Shaun Hildebrand added.
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