Toronto rents fall... for now

Figures from the Toronto Real Estate Board show that condo rents have fallen in the city over the last year.

A typical one bed unit listed on the MLS rents for $1,610 now compared to $1,583 at the same time last year. Some outskirts are seeing increases but the general pattern is lower rents as more condo developments are completed.

A scenario by Veritas suggested that if condo rents fell too low, investors may decide to sell rather than take a lower yield.

This could force a correction in the condo sector and wider market. This is considered unlikely, especially as there is a predicted growth in the rental market, especially among young people, which could see rents rising again.