Rental Market Report

Jul 19, 2021 | Market

Record Q1 Condo Rentals in 2021 TORONTO, ONTARIO, April 22, 2021

In the first quarter of 2021, average condominium apartment rents were down on a year-over-year basis, continuing to reflect a supply imbalance in favour of renters. However, year-over-year growth in rental transactions outstripped growth in the number of units listed over the same period, suggesting that rental market conditions are starting to tighten in the Greater Toronto Area (GTA) once again.

GTA REALTORS® reported 13,168 condominium apartment rentals through TRREB’s MLS® System during the first quarter of this year. This represented an increase of 81.6 per cent compared to 7,251 rentals in Q1 2020. The number of condominium apartments listed for rent during Q1 2021 was up by 78.8 per cent compared to Q1 2020.

“The number of condo apartment rentals reported in the first quarter represented a new record for the first three months of the year. This suggests we are accounting for pent-up rental demand from 2020. Strong rental demand is also an indicator of broader economic recovery with people willing to sign rental agreements because they are confident in their future job and income prospects,” said TRREB President Lisa Patel.

The average one-bedroom condominium apartment rent was down by 16.8 per cent year-over-year in Q1 2021 to $1,820 compared to $2,187 in Q1 2020. The average two-bedroom condominium apartment rent was down by 13 per cent over the same time period to $2,447 compared to $2,812.

“Average rents continued to be down on a year-over-year basis, as the supply and therefore choice for renters remained very high from a historic perspective. However, if growth in rental transactions continues to outstrip growth in listings, market conditions will become tighter as we move through 2021 and even more so in 2022 as immigration and non-permanent migration rebound,” said TRREB Chief Market Analyst Jason Mercer.

Condo Sales Market Report- First Quarter 2021

Q1 2021 GTA CONDO SALES RISE SUBSTANTIALLY TORONTO, ONTARIO, April 22, 2021 – Year-over-year growth in first quarter 2021 condominium apartment sales well outstripped growth in listings over the same period in the Greater Toronto Area (GTA). With market conditions tightening, average condo prices for Q1 2021 were above the averages for Q1 2020 for the regions surrounding the City of Toronto. The average condo selling price in Toronto remained below last year’s level.

First-quarter 2021 condominium apartment sales reported by GTA REALTORS® totalled 9,398 – up 79.8 per cent compared to 5,226 in Q1 2020. The number of new listings in Q1 2021 amounted to 11,373 – a 42.8 per cent increase over Q1 2020. Active listings totalled 2,811 at the end of Q1, an increase of 23.6 per cent compared to the end of Q1 2020.

“While the condo market was slower to recover compared to low-rise market segments, many Realtors have noted a marked increase in condo interest since the beginning of 2021. This interest will likely continue to increase as the economy improves and vaccine take-up accelerates, resulting in more confidence for first-time buyers,” said TRREB President Lisa Patel.

The overall GTA average condominium apartment selling price was down by 1.4 per cent year over year in Q1 2021 to $645,219. The decline in the overall GTA average selling price was entirely driven by a 4.6 per cent decline in the average selling price in Toronto to $675,844 over the same period.

“Consumer polling conducted by Ipsos in the late fall last year suggested that there was a substantial number of people intending on buying their first home in 2021. Whether we’re talking about Toronto or the surrounding suburbs, the condominium apartment is the logical entry point into the ownership market for many households,” said TRREB Chief Market Analyst Jason Mercer.

Source – Toronto Regional Real Estate Board