That did not turn out to be exactly true. Toronto vacancy rate declines to 3% in Q3-2021 and record number of condo lease activity was also recorded in Q3-2021. The downtown, it’s very much back!
According to a recent Urbanation report, the number of leases signed for condominium rentals in the GTA totaled 13,969 units in Q3-2021—increasing 6% from Q3-2020.
Lease activity in the middle of the pandemic Q3-2020 was still the highest number of leases in a third quarter since 2011!
At an average of $2,304 ($3.31 PSF), condo rents in the GTA surged by 8.2% in Q3-2021 from the previous quarter, pushing rents up 3.8% year-over-year.
Rents were almost fully recovered to pre-COVID peaks, coming within 4% of the Q3-2019 high.
The increase in rents was strongest in the former City of Toronto, which posted an 11.4% quarter-over-quarter and 6.2% year-over-year increase to $2,405 ($3.62 PSF). However, compared to two years ago, rents were down 6.9%
The rental market recovery is going strong as restrictions are lifting, offices are re-opening, sports games, concerts and people are returning to the downtown core.
Cities don’t just go away. They change. They re-form. Downtowns are the epicentre of arts, culture, entertainment and people will find their way back to it.
