October 2013 Rental Market in Toronto: CMHC

The rental apartment vacancy rate(1) in the Toronto Census Metropolitan Area (CMA) was 1.6 per cent in October 2013, essentially unchanged(2) from 1.7 per cent in October, 2012 according to the Fall Rental Market Survey released today by Canada Mortgage and Housing Corporation.”Strong demand from young adult households and fewer rental households moving to homeownership increased rental demand in Toronto. All the additional demand was absorbed by the condominium apartment rental market, but because the supply of units in this market increased faster than demand, the vacancy rate for rented apartment condominium increased to 1.8 per cent this year from 1.2 per last year,” said Ed Heese, CMHC’s Senior Market Analyst for Toronto.

On the basis of a sample of structures common to both the 2012 and 2013 surveys(3), the average two-bedroom rent increased by 3.0 per cent in Toronto, reflecting the relatively tight market conditions.

CMHC’s Fall Rental Market reports also include information on the secondary rental market for some centres. In the Toronto CMA, the rental condominium vacancy rate increased to 1.8 per cent from 1.2 per cent a year ago.

Rental Market data is also available in English and French at the following link: CMA Rental Market Report

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

(1) The survey is based on privately-initiated rental apartment structures of three or more units.

(2) The change in the vacancy rate for the current year was not significantly different, on a statistical basis, from the previous year.

(3) Year-over-year comparisons of average rents can be slightly misleading because rents in newly built structures tend to be higher than in existing buildings. Excluding new structures and focusing on structures existing in both the October 2012 and October 2013 surveys provides a better indication of actual rent increases paid by tenants.