Toronto apartment rental demand is lastly beginning to climb

After a number of months of excessive emptiness charges, low lease costs and lavish move-in incentives, there are lastly indicators that demand is returning for apartment leases in Toronto.

A brand new apartment rental market report of the Toronto Regional Actual Property Board (TRREB) discovered that apartment leases not solely elevated within the first quarter of 2021, however hit a document excessive for the primary three months of the yr within the Higher Toronto Space.

“This means that we’re factoring in pent-up rental demand from 2020,” mentioned TRREB president Lisa Patel. “Sturdy rental demand can also be an indicator of a broader financial restoration, with individuals prepared to signal rental contracts as a result of they’re assured of their future employment and revenue prospects.”

From January to March, 13,168 condominium residences had been rented within the GTA, together with 10,629 in Toronto. This can be a slight improve from 10,047 leases recorded within the fourth quarter of 2020, and a big improve from simply 5,794 leases recorded within the first quarter of final yr.

Regardless of the elevated curiosity in leasing, costs proceed to say no yr over yr and quarter over quarter. Within the first three months of this yr, Toronto singles rented for a median worth of $ 1,403 and a room for $ 1,819. This can be a slight drop from the tip of 2020, when costs had been $ 1,435 and $ 1,848.

“Common rents have continued to say no yr over yr as provide and subsequently tenant choice has remained traditionally very excessive,” mentioned Jason Mercer, chief market analyst of the TRREB.

However as Mercer warns, it probably will not final eternally as life begins to return to a extra regular tempo after the pandemic.

“If the expansion in rental transactions continues to outpace the expansion in listings, market circumstances will tighten as we transfer ahead into 2021 and even additional into 2022 with the rebound in immigration and non-permanent migration,” Mercer mentioned.

So in case you are planning to relocate to benefit from as we speak’s low rental costs, now could be the time to take action.

About Edith J.

Check Also

Guess the lease for this 2 bed room home on this Fifties dwelling in Alamo Heights

Residence costs have risen sharply this yr, which makes it tough for many who are …