“Record High”: Average Monthly Rents in Purpose-Built Market Cross $3K Mark
The first quarter of the year saw little reprieve from the raging rents that characterized 2022. In fact, rent inflation in the region has been as dramatic as ever, with the average rate for purpose-built rentals edging up to $3,002. That figure has reached “a record high,” according to new research from Urbanation, released Thursday.
The Toronto-based real estate consulting firm also reveals that Q1-2023’s average for purpose-built rentals is up 13.8% based on units that turned over in Q1-2023 and relative to the same quarter in 2022. Despite that rise being on the lofty side, it also demonstrates that the rents are inflating at a slower pace compared to Q4-2022, when the rate of annual rent increase clocked in at 15.1%.
Rent growth saw a similar upswing in the GTA’s condominium market, with average rents posting year-over-year growth of 13.6% and climbing to $2,741 in the first quarter. In the three-year period since Q1-2020, average condo rents have climbed 15%, making up for any declines that occurred during the first year of the pandemic.
Urbanation’s data also shows that condo demand is shifting to smaller units with lower monthly costs. Undoubtedly a reflection of affordability challenges plaguing the GTA, smaller unit types saw dramatic price growth in the first quarter, with rents for units under 500 sq. ft rising 21% year over year.
READ MORE: https://storeys.com/gta-rents-sail-past-3k-q1-2023-urbanation/
