Greater Toronto Area Rental Market Report in Q4 2017, Steve Moran, Remax
Rents for condominiums jumped in the first quarter this year as more renters stayed put because they could not qualify to buy homes under Canada's new mortgage stress-test rules.
The average rent for a one bedroom condominium was up by 11.4 per cent in the first quarter this year compared with the same period last year to $1995 while the average rent for a two bedroom condominium was up by 9.1 per cent in the first quarter this year compared with the same period last year to $2653.
Growing immigration and a strong job market are increasing demand for rental accommodation, while new supply is growing more slowly.
Additionally, tougher new mortgage qualification rules introduced January 1 by Canada's banking regulator kept many current renters from buying new homes, which also reduced renter turnover and contributed to the tight supply.
Looking ahead, I expect the low-vacancy, high rent growth situation that has unfolded in the Greater Toronto Area over the past year to continue.
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