Condo rental market heating up in GTA; Oshawa prices, volume not following the trend

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Published July 16, 2021 at 3:53 pm

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The number of condominium apartment rental transactions in the second quarter of 2021 was more than double the number reported in the same period last year, the Toronto Regional Real Estate Board is reporting.

GTA realtors reported 14,920 condominium apartment rental transactions through the MLS system in 2021, compared to 7,300 in 2020’s second quarter.

The number of rentals was also up compared to the first quarter of this year by 13.3 per cent. and 13,168 in Q1 2021.
Condominium units is not a real estate sector where Durham Region has a large market share. The average rental price for one-bedroom condos in Durham was actually the highest in the GTA at $2,004, albeit with a small sample size. There were just 15 units changing hand last quarter, versus 7,459 in Toronto.

For what it’s worth, Oshawa had the lowest rental price for one-bedroom condo units at $1,664.

“It is clear that the demand for rental accommodation has substantially increased compared to last year when there was a temporary pandemic-related lull,” said TRREB President Kevin Crigger.

“Strong rental demand will continue into next year, as immigration into the GTA picks up and we see a resurgence in the student population. With rental market conditions already tightening, and demand set to increase, we expect future increases in average rents.”

“This trend further reinforces TRREB’s continued call for government action to increase supply.”

The Q2 2021 average one-bedroom condominium apartment rent was down by 9.4 per cent year-over-year to $1,887, but up by 3.7 per cent compared to Q1 2021. The average two-bedroom rent was down by 4.8 per cent year-over-year to $2,583, but up by 5.6 per cent compared to Q1 2021.

But the situation is changing, said TRREB Chief Market Analyst Jason Mercer. “It is clear that rental market conditions are tightening and will continue to do so as population growth resumes. This will result in declining vacancy rates and an acceleration in rent growth into 2022.”

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