The Market Year in Review & Outlook 2021 report

2021 Market Outlook

HEAR FROM TRREB'S CHIEF MARKET ANALYST, JASON MERCER, ABOUT FOUR KEY INSIGHTS

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TRREB REPORTS CONDO RENTALS AND LISTINGS ARE UP WHILE RENT IS DOWN

TORONTO, ONTARIO, January 27, 2021 – Greater Toronto Area REALTORS® reported 12,584 condominium apartment rentals through TRREB’s MLS® System during the fourth quarter of 2020. This represented an increase of 86.3 per cent compared to 6,756 rentals in Q4 2019. The number of condominium apartments listed for rent during Q4 2020 was up by 131.6 per cent compared to Q4 2019.

“Demand for condominium apartment rentals reached record highs in the second half of 2020, particularly in the fourth quarter. However, at the same time, growth in the number of available units far outstripped growth in rental transactions, as many investors chose to make their units available due to the impact of COVID-19 on tourism and the short-term rental market, City of Toronto restrictions on short-term rentals, and the prospect of a vacancy tax. The result was much more choice and negotiating power for renters and a downward adjustment in average rents,” said Lisa Patel, Toronto Regional Real Estate Board (TRREB) President. 

The average one-bedroom condominium apartment rent was down by 16.5 per cent year over year in Q4 2020 to $1,845 compared to $2,209 in Q4 2019. The average two-bedroom condominium apartment rent was down by 14.5 per cent over the same time period to $2,453 compared to $2,868.

“As we move through 2021, rental demand will remain strong as the economic situation continues to improve, especially as the pace of the vaccine rollout increases and immigration and non-permanent migration into the GTA accelerates. Eventually, this will result in much of the current rental unit inventory being absorbed, but market conditions will likely continue to favour renters through much of 2021,” said Jason Mercer, TRREB’s Chief Market Analyst.

GTA CONDO SALES AND LISTINGS ARE UP WHILE PRICES ARE SLIGHTLY DOWN

TORONTO, ONTARIO, January 27, 2021 – Fourth quarter 2020 condominium apartment sales reported by Greater Toronto Area REALTORS® totalled 6,469 – up 20.7 per cent compared to 5,358 in Q4 2019. The number of new listings in Q4 2020 amounted to 12,298 – a 91.9 per cent increase over Q4 2019. Active listings totalling 4,294 at the end of Q4 were more than double that reported at the end of Q4 2019.

The overall GTA average condominium apartment selling price was down by 1.1 per cent year over year in the fourth quarter to $610,044. The average selling price in Toronto, at $644,516, was down by 2.4 per cent over the same period. Year-over-year price declines were especially evident for smaller units in the City, where investor-driven supply increases were strong.