During Q2 of 2021, Toronto’s rental market recovered to pre-pandemic levels, according to a report from Urbanation.
The analytics company revealed that during the second business quarter of 2021, 1,242 rental units were completed, with occupancy starting in the second quarter. The report says that this is the second-highest new rental unit addition rate in Toronto in more than 30 years, falling slightly behind Q1 2019’s 1,782 units.
Further, quarterly net absorptions in rental stock increased to 716 units, a rate that is four times higher than last year’s 179 units and 67 percent over the five-year average.
The report also states that rent has dropped by five percent annually but that the market experienced an average quarterly increase of 1.9 percent to $2,289. 88 percent of buildings in the city are also offering some sort of rent incentive, including in a month free.
“While new construction activity is also on the rise, the level of supply underway is expected to lag behind demand, creating conditions for rents to continue rising towards pre-COVID levels and beyond in the months to come,” said Shaun Hildebrand, the president of Urbanation in a statement to Livabl_.
The number of leases for condos have doubled year-over-year up to 108 percent to 12,747 units, a record for Q2. The vacancy rate of purpose-built rental projects have also fallen to 5.2 percent by the end of the quarter, a rate that’s down from 6.5 percent in Q1 2021, but above last year’s 2.1 percent.