According to data from Padmapper, the average rent for a one-bedroom Toronto apartment came in at a whopping $2,020 in January, slightly more than the $2,000 average rent in Vancouver.
The change represents a massive 15.4 per cent year-over-year jump, as the city’s demand for rental grows ever stronger.
Toronto’s apartment vacancy rate currently sits at 1.1 per cent, the lowest level in 16 years.
“Rising costs of home ownership and lack of new rental supply [keeps] vacancy rates at historic lows,” writes Canada Mortgage and Housing Corporation market analyst Dana Sengama in a statement.
According to an Urbanation report last week, the cost of a one-bedroom condo apartment rose 12.4 per cent quarter-over-quarter in December to reach $2,166.
“The continued tightening in market conditions caused rents to rise,” writes Urbanation VP Shaun Hildebrand, in a statement.
High rent and new rent control regulations also meant that tenants moved less in 2017, adding to already tight levels of rental supply.
“A total of 3,644 units began construction last year, including 1,198 in Q4,” writes Hildebrand. “After some cancellations and a pause in new applications following the new rent control rules earlier in the year, the inventory of proposed purpose-built projects increased to 33,787 units at year-end, with 5,410 units during Q4.”
That increase in construction was likely caused in part by developers taking note of the city’s desperate need for rental.
According to Hildebrand “[Demand fundamentals for renting far outweighing supply] has raised the confidence of developers to add more units to the pipeline, a trend that will need to continue in order to meet future housing needs for the GTA,” Hildebrand.
Despite the ongoing supply shortages in Toronto and Vancouver, it’s Montreal that has seen the fastest rental rate growth recently, with rental rates up 15.9 per cent for a one-bedroom apartment in the past year, to $1,310.
That may have something to do with a very strong Quebec economy over the past year. The province’s unemployment rate has been on a two-year downward trend, and ended 2017 at 4.9 per cent — the lowest level the province recorded since comparable data began being collected in 1976.
Image Source: THE CANADIAN PRESS/Jonathan Hayward