Number of condos up for rental in Toronto surges 132%

Toronto

THE number of condominiums put up for rent in Toronto more than doubled in the fourth quarter compared with a year earlier, a sign of a growing exodus of people from the city's downtown to more spacious accommodations in the suburbs.

The 132 per cent surge in supply sent rents tumbling in Canada's financial capital, one of the country's priciest cities for housing. The average rent for a one-bedroom condo fell almost 17 per cent from a year earlier to C$1,845 (S$19,10), while costs for a two-bedroom unit dropped about 15 per cent to C$2,453, according to data released on Wednesday from the Toronto Regional Real Estate Board (TRREB). "Growth in the number of available units far outstripped growth in rental transactions," Lisa Patel, president of the TRREB, said in the report. "The result was much more choice and negotiating power for renters and a downward adjustment in average rents."

The coronavirus pandemic has spurred an outflow of people from Canada's largest cities as many professionals work remotely and lockdowns displace service-industry employees. The shift from urban centers has been particularly pronounced among the younger demographic that's typically most drawn to the hip downtown neighborhoods where condo towers cluster.

The number of condos listed for sale more than doubled in the final three months of last year from the same period in 2019, TRREB data show. The average selling price declined 1.1 per cent in the metropolitan area to C$610,044, and fell 2.4 per cent to C$644,516 in Toronto's historic core. BLOOMBERG