Toronto condo rentals are seeing the most inventory in recent memory. Toronto Regional Real Estate Board (TRREB) data prepared by Toronto Realtor Daniel Foch shows rental inventory is still much higher than usual in September. Meanwhile absorption is failing to keep up, potentially explaining the abrupt rise of condos for sale.
Toronto Condos For Rent Rise Over 96%
Toronto condo apartments for rent are swelling to an unusually high level for this time of year. There were 7,901 units for lease in September, up 96.4% from the same month last year. This is the biggest September for rental inventory in at least half a decade. As for bigger months, only July and August have had more, over the same time period.
Toronto New Listings For Rentals
The number of new listings for rental properties in Toronto per month.Source: TRREB, Daniel Foch, Better Dwelling.
Toronto Condo Renters Rise Almost 45%
Toronto is also seeing a big uptick in the number of units leased. There were 3,477 leases signed in September, up 44.9% from last year. This would make it the biggest September in the past half decade. However, the increase isn’t nearly as large as that seen in new listings. This sent absorption levels back lower, as landlords outpaced renters significantly.
Toronto Rental Absorption
The number of rental leases absorbed by the market.Source: TRREB, Daniel Foch, Better Dwelling.
September Hasn’t Seen Such Weak Rental Absorption In A Long Time
Toronto condo rentals saw the rate of absorption make a sharp decline, after briefly picking up for a couple months. The rate fell to 44.0% in September, down from 59.7% last year. The drop reverses what looked like an improving trend. There’s only been two months lower than last month in the past half decade, and those were April and May of 2020, at the beginning of the pandemic.
Toronto New Listings Rental Absorption Rate
The ratio of new rental listings to rental leases accepted.Source: TRREB, Daniel Foch, Better Dwelling.
Toronto Condo Inventory Jumps To Highest Level In Years
Toronto’s soft rental inventory may be leading more people to sell instead. There were 5,621 new listings for condo apartments in September, up 77.5% from a year before. This is the most new listings in a single month for at least half a decade. When contrasted with new listening for rent, it appears to make a little more sense.
Toronto New Listings For Rent Vs Sale
The number of new rental listings to new listings for sale.Source: TRREB, Daniel Foch, Better Dwelling.
The increase in listings and sales volumes is expected to persist for the near term. This trend is due to slowing population growth, and an influx of recent condo apartment completions. With immigration, the main driver of population growth, expected to be stalled for the next year, it’s difficult to see this trend reverse.
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