12 October 2018

The number of condo rent transactions set the highest record for the third quarter in 3 years with 8,186 units. It was a 5% year-over-year increase, caused by the new supply.

Meanwhile, there were only 826 purpose-built rental construction starts in Q3, following the impressive 2,635 starts of the second quarter. It was the lowest quarterly level of starts for the previous 2 years.

The total inventory of purpose-built rentals under construction rose to 11,172 units, marking the highest level in more than 30 years. In addition to it, the number was 56% higher than a year earlier, and we expect a completion of record 28,163 apartments in 2019, including 4,419 purpose-built rental units.

“Sharp rent growth has continued in the GTA for more than 2 years already, proving that it’s vital to provide a much stronger supply for creating balanced market conditions,” – noted Shaun Hildebrand, President of Urbanation. “Although rising number of condo completions may have at least some cooling impact in 2019, we still need faster pace of purpose-rental construction to meet the current demand.”