The second quarter of 2024 brought significant changes to the Greater Toronto Area (GTA) rental market. This period saw a substantial increase in both rental listings and transactions, providing renters with more options and impacting average rental prices.
Market Overview
In Q2 2024, the total number of apartments listed rose by 51.3% to 30,097, compared to 19,892 in Q2 2023. Similarly, the number of apartments leased increased by 25.2%, totaling 17,400 compared to 13,896 in Q2 2023. The townhome segment also experienced growth, with listings up by 38.8% and leases up by 15.6%.
Bachelor Rentals
- Apartments: The average rent decreased by 6% to $1,971, while units leased increased by 29.4% to 762.
- Townhomes: The average rent slightly increased by 0.8% to $2,100, with units leased up by 133.3% to 7.
1-Bedroom Rentals
- Apartments: The average rent decreased by 3.1% to $2,452, and units leased increased by 23.5% to 9,697.
- Townhomes: The average rent decreased by 3.8% to $2,272, and units leased increased by 30.3% to 99.
2-Bedroom Rentals
- Apartments: The average rent decreased by 1.9% to $3,178, while units leased increased by 24.5% to 6,224.
- Townhomes: The average rent decreased by 1.0% to $3,013, and units leased increased by 23.3% to 513.
3-Bedroom Rentals
- Apartments: The average rent decreased by 6.9% to $3,977, with units leased increasing by 56.9% to 717.
- Townhomes: The average rent slightly increased by 1.2% to $3,587, and units leased increased by 5.3% to 476.
Analysis and Market Trends
The significant increase in rental listings across all unit types suggests that more properties are entering the market, providing renters with greater selection and negotiation power. This influx has helped stabilize and, in many cases, reduce rental prices across the GTA. Despite the decrease in average rents, the increase in leased units across all categories indicates strong demand, driven by the growing population and ongoing economic factors.
TRREB Insights
TRREB President Jennifer Pearce noted that record population growth continues to drive demand for rental accommodations. The high mortgage payments associated with ownership housing also contribute to the strong rental demand. TRREB Chief Market Analyst Jason Mercer highlighted that while the increase in available inventory has resulted in more affordable rents, this relief may be short-lived if the supply of new rental units doesn’t keep pace with demand.
Explore your opportunities
Team McDadi is here to help renters, landlords, homebuyers, and sellers navigate the ever-changing market. With our extensive network of professionals and multilingual representatives, we ensure you make informed decisions, whether you’re renting, buying, or selling. Stay ahead with Team McDadi and find the property that meets your needs with confidence.
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