Toronto Real Estate | Rental Market is on Fire
Now it's no surprise with Toronto real estate thriving in affordability slipping away from everyone's grasp. As baby boomers begin to downsize, the millennials try to get into the market, renting becomes the only option for many people. And because of that, supply is low; demand is there resulting in prices rising. Urban Nation Inc. just released their Q3 statistics on the rental market.
Condos and quarter 3 are up 9.4% which brings the overall average price per square foot to $3.26. Transactions also are the highest in the third quarter which reached over 8000 units. It's roughly up 5% from a year, and that's because of a little more availability of units into the market.
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The market conditions remain tight as total days on market average went from 10 days last year on average days on the market to 11 days.The total percentage of listings going over listing price went from 29% last year to down to 26%. That is due to a lot more agents continue to price higher leading to a lot more pullback with the tenants to come up on price. Especially when you start having fewer offers on these properties.
The new purpose to built rental construction stats, slowed in Q3 to 826. This came off in Q2 as a record high of 2635 stats. Probably the reason why there are at a record low which is the lowest its been in over two years. Total inventory that is construction 1172 which moved up slightly making it the highest level over 30 years. Trying to keep up with the demand as supply has been low and continues to be low due to affordability. The total stats that are in construction is 56% higher than last year, so there is a big push, and there would be a continual big push form rental units as the demand is there and supply low. This keeps pushing up the average price of what people are paying.
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The city is also pushing for a lot of more perks to be put into or forcing developers to start making them. This is going to draw back on the available units if the laid receiving lands for designated parts plus similar things. So, that supposed to be in the works right now.
Jumping into the actual numbers, by rental type, when we look at them all across the border you see a favorable increase although some of the units have dropped for the number of leases that are leased. This is because these prices continue to surge, many people are not jumping into the rental market and are looking for other means to either move or stay where they are.
Jumping into the GTA Condo Rental Summary by Unit Type , you have studios up 9%, one bedroom up 11% which is the highest, one bedroom plus den, you're looking at 8%, 2 bedrooms at 10%, 2 bedrooms plus den up at 8%; and three bedrooms or other is up 7%. These numbers are staggering high compared to last year but no surprise when supply and affordability are reaching record highs where people can afford and jump into the rental market. Although numbers are up against the inventory levels, it still does not meet supply.
Moving forward, if you are looking to rent, ensure your paperwork is collected and prepared. Although the average days on market says it's 11 days depending on what you are looking for. For instance, if you are in one bedroom, it goes within days if not hours sometimes.
Now, for paperwork, ensure you have your rental application filled although it is a good idea to leave the rental amount and address blank until you put offers in. Other important details are credit reports for anyone on the lease, proof of employment either being pay-stubs, a letter from an employer and also a co-signer who has their paperwork in order. This documentation is important when you submit offers for a much quicker process, even if you have to talk to a leasing rep.