This was spurred by a massive influx of former short-term listings into the traditional rental market
Rental listings in Toronto more than doubled during the third quarter with the mass exit of condo investors from Airbnb and similar platforms, according to the Toronto Regional Real Estate Board.
In the three months ending September, the number of condos listed for rent in the Greater Toronto Area spiked 114%, amid the influx of former short-term listings into the traditional rental market.
This volume far outstripped the 30% annual increase in the number of units rented, and contributed to a noticeable drop in rent prices across all property types, TRREB said.
One-bedroom units saw their rents drop by more than 11% (to $2,012) during the third quarter. Rent rates for bachelor units and two/three-bedroom condos also fell by 15.5% (to $1,608), 9.2% (to $2,672), and 8.7% to $3,421, respectively.
“The demand for condo rentals remained very strong in Q3 as the economy experienced a substantial rebound. However, this demand was overshadowed by the very rapid rise in rental listings,” said Jason Mercer, chief market analyst of TRREB.
The vacancy rate was highest in the City of Toronto, settling at just 0.9%. Demand was feverish in Durham, Peel, and Halton with their 0.4% vacancy average, and even more in York with its 0.3% reading.