MARKET UPDATE FOR THE WEEK ENDING JUNE 26TH, 2020
The COVID-19 pan demic continues to put downward pressure on the rental market nationally. A growing supply of apartments, mostly in the condo sector are hitting the market as Covid has stalled immigration and sent university students andsome hourly workers home to live with their parents. In Toronto, rents declined .7% year-over-year. In downtown areas with concentrations of short-term rentals and neighbourhoods with large student populations, there has been an uptick in vacancies and rent incentives to try and fill units that have emptied out. Total lease transactions in the GTA condo market grew 16% year-over-year during Q1-2020 to reach 7,002 units — the highest first quarter total on record. The post-COVID-19 period saw a steep decline in activity, with lease volume down 25% compared to the same period a year earlier.
Of importance, rental supply did not experience the same degree of decline as leases, with new listings decreasing by a more modest 7% in the post-COVID-19 period from a year earlier. The relatively more stable level of new listings may be attributed to a rise in condo completions in the first quarter.
The chart below looks at the average rent for all property types by municipality in the GTA over the past 13 months.