At present, Toronto is far more hospitable to renters than buyers, with the average surveyed rent for recently leased units increasing at the slowest rate in two years.
As of Q3 2019, the average surveyed rent for recently leased units and available units in the GTA stood at $2,515 monthly, according to the latest rental market data from Urbanation.
This was 6.1% higher year-over-year, but “essentially unchanged” from the second quarter. Rent growth decelerated even though the vacancy rate is still hovering at a near-record low of 0.8% during the third 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 reported.
The rise of rental units as the foremost choice for bargain seekers has become apparent in the 52,839 purpose-built rental units proposed across the GTA during Q3 2019. This was markedly higher than the 42,432 proposal units a year ago
“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 said.
Year-to-date (as of the end of Q3), fully 3,157 purpose-built rental units have been completed, marking the highest level of new rental supplied delivered in 25 years. By the end of the third quarter, as much as 11,413 rental units were under construction in the GTA, with more than 80% of these situated in the City of Toronto.