Renting a condominium in Toronto has grow to be extra inexpensive and enticing to newcomers. Decrease asking costs and elevated rental condos available on the market have given renters extra bargaining energy with landlords. Understanding Toronto’s altering condominium market will help newcomers discover their first rental house in Canada.
For newcomers, it’s an excellent time to hire or purchase a condominium in Toronto. And the market will supply many enticing choices in 2025. The market is in flux because of an oversupply of condos amid falling gross sales and rental asking costs. Toronto and Vancouver are by far the biggest condominium markets in Canada.
In Toronto, condominium gross sales have slowed dramatically in 2024, descending right into a state of affairs described as “bleak.”
Toronto Apartment Market Gross sales Sluggish
In line with latest knowledge from Altus Group and BILD GTA, solely 210 new condos had been bought throughout the Better Toronto Space (GTA) in October. That’s down 84% from the identical time final yr. The drop reveals how exercise in Toronto’s condominium market has slowed and why hire asking costs have fallen.
There are roughly 40,000 models of condominium provide within the GTA. This consists of unsold condos in improvement, project listings, or condominium resale listings. Toronto condominium market forecasts recommend there could also be extra inexpensive alternatives for newcomers trying to hire or purchase a condominium.
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Throughout Canada, condominium hire costs are falling for all unit sorts apart from widespread three-bedroom models. Nationally, two-bedroom condominium rents noticed the biggest annual decline. This nationwide pattern in condominium asking rents matches what’s taking place in Toronto.
The Professionals and Cons of Apartment Dwelling for Newcomers
Whether or not renting or shopping for, dwelling in a condominium in Toronto gives newcomers benefits and drawbacks:
| PROS | CONS |
|---|---|
| Much less upkeep and repairs | No management over upkeep & restore schedules |
| On-site facilities, corresponding to a sauna, swimming pool, fitness center | Paying for facilities you don’t use |
| Enhanced security measures | Much less privateness and presumably extra noise |
| Predictable month-to-month upkeep or condominium for homeowners | Particular evaluation costs for surprising repairs |
| Apartment boards elected by and answerable to homeowners. | Some condominium models are small |
| A group way of life with social, leisure, and recreation | Apartment board guidelines on noise ranges, parking, pets, smoking and adorning |
| Chance of renting out the unit as an Airbnb rental | Disruptions attributable to Airbnb leases |
A few of these professionals and cons have an effect on homeowners solely and never renters. When you hire, your landlord will clarify the condominium guidelines and laws earlier than you signal the lease.
Apartment Rental Marketplace for Newcomers
In line with third-quarter knowledge from the Toronto Area Actual Property Board (TRREB), robust inhabitants development within the GTA has boosted condominium leases.
Along with inhabitants development, there was a big development within the variety of condos for hire in Toronto. This gives newcomers trying to hire within the Toronto condominium market better selection and decrease rental prices.
“Many newcomers to the GTA initially select to hire a house,” stated TRREB President Jennifer Pearce.
“Given the file tempo of immigration, it’s no shock that the variety of (condominium) rental transactions continues to pattern upwards,” stated Pearce. “In latest months, these renters are benefitting from rather more negotiating energy, because of a rise in itemizing provide. This has resulted in a extra inexpensive (condominium) rental market.”
Toronto Apartment Market Rents Proceed to Fall
The common hire for every type of leases in Toronto in November was down 9.4% year-over-year to $2,640.
| CONDO TYPE | RENTAL PRICES (NOV 2024) |
|---|---|
| 1-bedroom Apartment | $2,385 (down 8.3% from 2023) |
| 2-bedroom Apartment | $3,115 (down 10.2% from 2023) |
| 3-bedroom Apartment | $3,7109 (down 6.2% from 2023) |
Shopping for a Apartment in Toronto: Market Situations
A condominium could be a good entry-level house for newcomers trying to purchase within the Toronto market.
With many condos available on the market and at decrease costs, would-be patrons have been renting and saving cash. They’ve been ready for rate of interest cuts and condominium costs to fall. Toronto condominium patrons have been ready for the Financial institution of Canada to decrease its key rate of interest beneath 3.5%. In December, the Financial institution lowered the speed to three.25% from 3.75%.
Consumers have additionally been ready for fascinating two- and three-bedroom condos in prime downtown places to come back available on the market.
When shopping for a condominium, it’s good to think about the scale. The most popular-selling condos are two and three-bedroom models of 800 sq. toes or bigger. Nevertheless, the fact is that the majority models are 600 sq. toes or much less (studios, one-bedroom, one-and-a-half bedrooms).
Toronto Costs to Stay Secure
In Toronto, the common promoting value of a condominium (all sizes) in October was $650,000, down 0.7% from September. General, the worth has fallen 6.1% since October 2023.
The common promoting value for all property sorts within the GTA has fallen 15% for the reason that peak in February 2022. Housing and condominium costs within the GTA are anticipated to stay secure or rise slowly come spring, relying on rates of interest.
Toronto’s condominium market is changing into extra enticing for newcomers. However for now, there seems to be no rush to purchase one. As Toronto actual property agent Grace Chan informed The Toronto Star, “Rates of interest should be decrease, and the (condominium) stock must be extra attractive,”
Sources:
Steve Tustin is the Editor for Leases for Newcomers and a contributing editor for Put together for Canada. He’s additionally the previous managing editor of Storeys.com and a former senior editor on the Globe and Mail and the Toronto Star.