For the first time in three years, condo rents in Toronto, Canada’s most populous city, have decreased. This is according to a report by Urbanation Inc.
The report states that the average condo rent in the Greater Toronto and Hamilton Area declined by 1.2% in the second quarter of this year compared to the same period last year. From April to June, the average rent per square foot was $3.97, or $2,723 for a 686-square-foot apartment. In the same period last year, the average rent per square foot was $4.02. This is the first time condo rents have decreased since 2021.
Urbanation president Shaun Hildebrandt says rents have fallen slightly as condo completions have increased. However, there are concerns about the sustainability of this trend as new condo sales and construction have declined significantly.
Rents for purpose-built rental apartments completed in 2000 rose 2.2% last year to $4.08 per square foot. However, rents in Toronto have fallen 0.5% and in the broader region by 7.7%.
Meanwhile, the vacancy rate for purpose-built rental apartments increased 2.7% in the second quarter of this year, compared to a 1.6% decrease in the same period last year. Additionally, the construction of rental apartments has increased by 43% compared to last year.
