Landlords in the Greater Toronto Area increased monthly condo rents by an average 9.1% on the fourth quarter of 2017 compared to a year earlier.

Average rents per square foot increased 2.8% to $2.93 according to data from Urbanation.

In downtown Toronto, rents increased by as much as 12.4% to $2,392 ($3.37 psf) while the 905 region saw an 8% rise to $1,867 ($2.45 psf) on average.

“Persistently strong rent growth throughout 2017 was simply the result of demand fundamentals for renting far outweighing supply” said Shaun Hildebrand, Urbanation’s Senior Vice President. “This has raised the confidence of developers to add more units to the pipeline, a trend that will need to continue in order to meet future housing needs for the GTA.”

There was a 1% increase in the number of condos rented through the MLS system in the GTA during the whole of 2017 to a new record high of 27,219 units.

Leasing activity was lower though compared to 2016 (down 8.3%) and was the lowest level of condo rental turnover since 2013. This was mainly due to investors reselling units due to rising prices, and a lower rate of supply.

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