Condo rentals skyrocket in Toronto as landlords abandon Airbnb
Despite the ongoing pandemic, condominium rentals in Toronto have skyrocketed this year in comparison to last year.
According to a recently released rental market report by the Toronto Regional Real Estate Board (TRREB), GTA realtors reported 14,036 condominium rentals during 2020's third quarter.
This is a 30.2 per cent increase from the third quarter in 2019 when 10,781 condos were rented.
"The demand for condo rentals remained very strong in Q3 as the economy experienced a substantial rebound. However, this demand was overshadowed by the very rapid rise in rental listings," Jason Mercer, TRREB's chief market analyst said in the report.
The number of condos listed also increased during this time, as Mercer indicated, by a staggering 113.9 per cent compared to 2019. While 2019's third quarter saw 16,348 condos listed, there were 34,971 in 2020.
JUST RELEASED!— Toronto Regional Real Estate Board (@TheReal_TRREB) October 23, 2020
What you’ll find in TRREB’s Q3 Rental Report:
•Demand for Condo Rentals ✅
•Increased Units Listed ✅
•Impact of COVID-19 Restrictions ✅
•And MORE! ✅
Get the Q3 Rental Report here: https://t.co/7wnFxz3qgc#TRREB #RentalReport pic.twitter.com/xqtu98GnQy
"Demand for condo rentals was very strong in the third quarter, with a record number of quarterly transactions reported. However, during the same period, the number of units listed more than doubled compared to last year," TRREB president Lisa Patel added in the report.
"Many investor-owners took their units out of the short-term rental market, due to stricter regulations and the COVID-19-related tourism downturn, and made them available in the traditional rental marketplace. The result was more choice and more negotiating power for renters."
During this time, rent prices for different condo types decreased. Rent for a one-bedroom, for instance, was down by 11.1. per cent for an average of $2,012. Similarly, the rent for a two-bedroom was down by 9.2 per cent for an average of $2,672.
These numbers come after a summer in which the number of new listings shot up in downtown Toronto buildings that were notorious for Airbnb activity.
"Despite the temporary two-month ban on short-term rentals lifting on June 5, a significantly slower tourism industry is forcing many short-term rental investors to consider recalibrating their income strategy to either seek long-term tenants or consider offloading their investment entirely," a Zoocasa report from July reads.
Looks like the time to rent is now.
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