TRREB Q1 2023 Rental Market Statistics: A Snapshot of the GTA Condominium Apartment Rental Market
Sunday May 07th, 2023
TRREB Q1 2023 Rental Market Statistics: A Snapshot of the GTA Condominium Apartment Rental Market
READ THE FULL TRREB RENTAL MARKET REPORT HERE
In the first quarter of 2023, the Greater Toronto Area (GTA) condominium apartment rental market experienced strong pressure due to rapid population growth and high borrowing costs. Despite an increase in listings, competition among renters remained fierce, leading to substantial growth in average rents.
Key Findings:
The GTA condominium rental market serves as a crucial source of rental supply, catering to the region's record population growth.
Tight market conditions have led to unsustainable rent growth, necessitating more supply in the form of purpose-built rental properties.
TRREB President Paul Baron calls for the development of rental properties to be a central component of housing policy at all government levels.
Q1 2023 Rental Market Overview:
10,525 condominium apartment rentals were reported through TRREB's MLS® System, a 4% increase compared to Q1 2022.
Rental listings grew by 10.2% Year Over Year, outpacing growth in rental transactions.
Despite increased supply, market conditions supported a 15.1% Over Year increase in the average one-bedroom condominium apartment rent ($2,474) and a 9.2% increase in the average two-bedroom rent ($3,162).
Factors Impacting the Rental Market:
The Bank of Canada's interest rate hikes a year ago prompted some potential homebuyers to enter the rental market.
Increased demand, coupled with limited rental listings and lower vacancy rates, led to rent increases well above the inflation rate over the past year.
Recent Ipsos polling for TRREB indicates many renters are considering homeownership as monthly rents rise, highlighting persistent supply issues in both rental and ownership markets.
April 2023 Prime Rate and Fixed 5-Year Mortgage Rate:
Prime rate: 6.7%
Fixed 5-year mortgage rate: 6.5%
Rental Market Summary - Apartments (YoY % Change):
Listings: +10.2%
Leased: +4.0%
Average Rent (Bachelor): +16.2%
Average Rent (One-bedroom): +15.1%
Average Rent (Two-bedroom): +9.2%
Average Rent (Three-bedroom): +15.0%
Data Source: TRREB Rental Market Report. Read the Full Report HERE
This report was prepared by.
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Sami Chowdhury
Broker
RE/MAX Realtron Realty Inc., Brokerage
885 Progress Avenue, Suite 209, Toronto, Ontario, M1H 3G3
Direct: (647) 725-0606
Office: (416) 289-3333
Fax: (416) 289-4535
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