Rent for purpose-built apartments is increasing at more than four times the rate of rental condominiums, according to a newly released report.
While condo rent has risen 3.9 percent since 2023, monthly rent for purpose-built apartments has increased 12.7 percent since this time last year, a joint report from consulting firm Urbanation and Rentals.ca found. The report attributes the difference in growth, at least in part, to “condominium completions rising to record high levels in Toronto.”
The largest overall rent increases were for smaller, less expensive units. Studio apartment rents rose 14.9 percent to an average of $1,564, while the cost for a one-bedroom apartment went up 13.6 percent to $1,926 per month on average. Despite the large growth in rental costs, apartments continue to be slightly cheaper overall compared to condo rentals.Condominium apartments rented by investor-owners to long-term tenants are an important source of rental supply, says the Canada Mortgage and Housing Corporation, particularly in major cities. In 2022, rental condominiums accounted for nearly 20 percent of total rental stock.
