Double-Digit Rise in Condo Unit Rents in Q1 2023

According to a new report released by the Toronto Regional Real Estate Board (TRREB), the cost of renting is rising by double digits. While the numbers are eye-popping, anyone looking to rent a home won't be overly surprised. 

Bachelor condo apartments are up 16.2% (to $2,014), rent for one-bedroom condos rose 15.1% (to $2,474), two-bedrooms increased 9.2% ($3,162), and three bedrooms increased 15% ($4,152). See the below chart from TRREB for more information.

According to TRREB, there were 10,525 condo apartment rentals through TRREB’s MLS® System in Q1 2023. That's up four per cent compared to Q1 2022. Rental listings were up by 10.2 per cent year-over-year, outstripping growth in rental transactions. Despite more supply, market conditions remained tight enough to support the double-digit growth in rental costs. 

“The GTA condominium rental market continues to be a key source of rental supply, helping accommodate record population growth," saysTRREB President Paul Baron. "However, tight market conditions are resulting in an unsustainable pace of rent growth. To balance things out, more supply is needed. Much of this supply should come in the form of purpose-built rental properties. The development of rental properties needs to be an explicit part of housing policy at all levels of government.”

With an increase in people that the GTA is welcoming and a slow down in new developments on the horizon, it's unlikely there will be much releif for renters in the near future.

If you are interested in leasing out a condo or property you own, or renting a condo or property, feel free to contact me for further information and analysis.