Condo rental listings were up in Toronto by 45%

After many years of extremely low vacancy rates, Toronto’s rental market reported a sharp increase in new listings during the second quarter of 2020 caused by the COVID-19 pandemic.

According to the latest report by Zoocasa, condo rental listings rose by 45% annually in the City of Toronto over Q2. At the same time, the number of condos leased was down by 25%.

The report analyzed quarterly market data from the Toronto Regional Real Estate Board (TRREB). It shows that the rental market changes can be caused by the economic influences of COVID-19.

Zoocasa says that in March and April, many renters who were insecure about their future employment decided to move to more affordable rent, larger spaces or a property closer to family.

The report shows that 26 out of the city’s 35 TRREB regions saw annual condo rental listing increases. In case of 20 of them, the gains were double-digit.

Five regions reported faster growth in new condo rental listings than the city average, including C01, where listings rose by 80% annually. In case of C02, which includes Yorkville and the Annex, there was an 88% hike in condo rental listings and a 14% drop in the number of new signed leases.

Only three Toronto areas showed an increase of condo rental leases: C11, E04 and E01 at 352%, 18% and 106%, respectively. However, Zoocasa agent Jim Roberts says the tendency could concern the occupancy beginning in brand new buildings and is not necessarily a result of COVID-19.

With the rental supply gains, prices fell by 6% in the City of Toronto and reached $2,357. The C11 and E04 regions were most affordable communities, with rents going down by 12% annually to $1,987 in C11, and remaining at $1,960 in E04.