Toronto Condo Rental Rates Declining as New Product Comes Online

According to the Globe and Mail there are signs that rents in Toronto’s condo market is on the brink of collapse as rents for the new units have been decreasing, at a time when new landlords are already dealing with low returns, a new report says.


The report cited by the newspaper indicates that the condo rental market might be tipping in favour of renters runs counter to the general belief among economists and industry experts that the condo rental market is strong, and that rents are rising.



The  rental market will not be as strong in 2014, 2015 .as indicated by the  Canadian Imperial Bank of Commerce economist Benjamin Tal. The reason for this is that  the number of new condos coming on stream is forecast to be very high in the coming years. This is a market that hasn’t been tested yet and the real test will be when we get extra supply in the next year or two, that’s when you will test the willingness of investors to be in this market given that rents probably won’t be rising at today’s pace.