Thirty per cent in three years.
That’s how much rents have gone up across the GTA says new research by Urbanation.
The Toronto market analysis company’s work also shows that residents now face paying a monthly average of $2,515 to live in a dedicated rental apartment built post 2005. That doesn’t include utilities and parking.
Here’s the good news: rents are up only 6.1 per cent, year over year, from $2,370 during the third quarter of 2018, and that is the slowest growth in two years.
So, is the worst over?
Well, according to Urbanation’s Q3-2019 rental market results “rent inflation has begun to moderate after a strong escalation in recent years that brought rents up by about 30 per cent compared to three years ago, suggesting that $2,500 per month may represent a near-term resistance level for GTA rental affordability.
“As well, the 3,157 purpose-built rental units that completed construction in year-to-date 2019 was the highest level of new rental supplied delivered in 25 years, which has coincided with a rise in condominium apartment completions — many of which are used as rentals.”
So, more choice seems to be slowing the rate of price hikes, but will it last?
The report says that rental apartment completions are “expected to remain consistent with their current 2019 pace over the next couple years, which should continue to help restrain rent increases alongside further growth in condo supply.”
Plus, “affordability constraints” are affecting rental market growth, says Urbanation President Shaun Hildebrand. He adds that cost-saving measures by renters include “more multi-tenant households and substituting to smaller units and less expensive areas of the GTA.”
Vacancy rates sit at just 0.8 per cent.
The market information used by the quarterly survey includes purpose-built rental apartment projects finished in the GTA since 2005 and comprises 68 buildings and 14,832 units.