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Urbanation Resale & Rental Report – Q3 2022

Posted by Thomas on October 20, 2022
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On this page, you can find VIP Condos Toronto’s summary of Urbanation’s Urban Rental and resale/condominium reports for Q3 of 2022, with info on trends in the Greater Toronto Area’s rental housing market. VIP’s report will provide a summary of the reports, along with access to the full versions of Urbanation’s research:

Urbanation Graphics - Q3 2022

Key Points:

          Urban Rental:

  • Q3 condo lease activity was down 11% annually to 12,447. Listings at quarter-end fell 20% year-over-year to 2,311 units — 6% below the 10-year average.
  • Average condo rents reached a record high $3.86 psf, an 8.1% quarter-over-quarter increase.
  • Rents were up 14.5% over the past six months and 11.9% higher than the pre-pandemic peak in Q3-2019.
  • Year-over-year rent growth continued to rise fastest for the smallest unit types in Q3.
  • Lease activity has begun shifting into larger unit sizes as homeownership affordability continues to erode.
  • Vacancy rates fell to 1.2% from 3.2% a year ago, which is down from a pandemic high of 6.4% in Q1-2021.
  • Purpose-built rents rose 6.1% quarter-over-quarter and 9.0% year-over-year to reach an average of $3.65 psf.
  • Quarterly purpose-built absorption rates remained at a high of 42% in Q3-2022, with year-to-date absorptions reaching a multi-decade high of 2,896 units.
  • Year-to-date construction starts for purpose-built rentals totaled 1,709 units, a 72% drop from last year.

Condo Rentals: 

  • After a scorching hot May to August period, the GTA rental market became less heated during September.
  • The market saw a 28% month-over-month decline in lease transactions (to 2,726 units). 
  • There was a 6% monthly decline in new listings, which totaled 3,978 units.
  • Active rental inventory at quarter-end was still down 15% from a year ago and equal to less than one month of supply.
  • Units continued to transact quickly at an average of 10 days on market, with a low of 8 days in August.
  • After hitting a record high of $2,806 in August, average rents dipped by 0.7% in September to $2,785.
  • Compared to a year ago, average rents were up 19.7%, maintaining annual growth of between 18% and 20% for the 10th straight month.
  • A 33% share of leases transacting for over-asking rent in September, down from a 41% share in August.

Resale Market:

  • Condominium resale market activity declined to 1,317 sales, a 50% drop from last year’s September high.
  • After briefly perking up in August, sales decreased 12% month-over-month in September.
  • The number of new listings grew 10% monthly
  • The sales-to-new-listings ratio fell back below 40%.
  • Inventory at month-end was up 20% year-over-year, but remained historically tight with the 4,654 active listings 13% below the 20-year average.
  • The 3.5 months of supply on the market was more than double the level from a year ago (1.5 months) but only slightly above the 20-year average of 3.2 months.
  • Average resale prices increased 2.7% month-over-month to $730,818 — a three-month high. This was mainly due to compositional changes, as median prices were essentially flat from August and benchmark prices dipped by 1.6%.
  • All of the monthly price gains occurred in the City of Toronto, which recorded a 4.3% increase while 905 average prices were unchanged from August.
  • Annually, average resale prices were up 3.2%, with two-year growth of 15.1%. For the first time since the start of the pandemic, annual price growth was higher in the City of Toronto than in the 905 (3.4% vs. 3.3%).

 

Click Here To Read Urbanation’s Full Rental and Resale Reports for Q3 of 2022

 

In order for you to use these market updates to your advantage, our informative guide for buying pre-construction properties can be found under the Resources tab in the top right corner of this page. It will answer common questions such as:

  • How do I get my down payment?
  • Can I use my RRSP for my down payment?
  • How can I make the profits from my pre-construction purchases tax-free?
  • What type of home or mortgage can I afford?
  • Which incentives are available for first-time buyers?
  • What is a PDI?
  • What are the pros & cons of buying or selling an assignment before closing?

 We at VIP Condos are pleased to offer further information regarding outlooks & prices in the GTA’s home & condo markets. Check out our full series of real estate market watch reports, as well as our home & condo market outlook for 2022.

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