In a year-end report published by Urbanation Inc, condo rental fees have increased by almost 12 per cent in 2016, with the average rental rate in Toronto’s downtown core sitting at $2,134 per month.
The report showed that by the end of the year, rent reached a monthly rate of $2.77 per square foot. The average size of a leased space in the Greater Toronto Area is 719 square feet, placing the average monthly rent at $1,990.
Urbanation explained that a decrease in inventory in the high-rise condo sector is most likely one of the main contributing factors. The company said that the decrease in inventory is partially caused by landlords reselling condos.
The number of condos rented in the GTA decreased by two per cent since 2015. A drop in rental turnover, an increase in unfinished condos that remain under construction, and a growth in resales are contributing factors to the decrease in condo rentals in the city.