Projects launched in 905 (Milton, Vaughan, Mississauga, Oakville, Hamilton and Oshawa)

In the last quarter of 2021, the GTA had one of the lowest levels of available resale inventory on record, dropping as low as 0.5 months of inventory (MOI) in December. The lower the MOI, the more rapidly we should be expecting prices to rise, signaling a continued strong seller’s market. The current level of MOI gives us a sense of how extremely competitive the market is on-theground today, and if it continues on this downward trend, should give us some clues as to where the market may be heading in 2022.

By The Numbers

By Saraya Yen

Rental Rates

2,170 Active listings available in Toronto, a significant decline in availability compared to 8,075 listings at the end of 2020

$2,455 Average lease price in Toronto ($3.63/PSF)

$2,361 Average lease price in GTA ($3.27/PSF)

47,737 Annual lease transaction volume in the GTA, up 24% Y/Y

2.4% Vacancy rate in Toronto, down from 6.4% at the start of the year

1.1% Vacancy rate in 905

Sources: TRREB, Rentals.ca, Move Smartly Report, CMHC

This year, the rental market witnessed an incredible recovery. Following a tumultuous 2020 with vacancy rates peaking around 6.4%, the rental market bounced back with an annual increase in average monthly rental rates for four months in a row, a 24% increase in lease transactions (47,737 units) and vacancy rates settling back down to their 10-year pre-pandemic sub 2% average. Note, smaller units (under 600SF) in the downtown core were the growth leaders last year, with lease activity up 27% Y/Y.

By The Numbers

By Saraya Yen

Purpose-Built Numbers

1,042 New purpose-built rentals started construction in Toronto (Q4)

1,751 New purpose-built rental construction starts across the GTA (Q4) or 6,720 units in 2021

17,912 Purpose-built rental units under construction in the GTA

3,358 Purpose-built rental completions

Sources: CMHC, Urbanation, Toronto Star, BlogTO 10.8% Annual change (increase) in average GTA condo lease/PSF

2.4% Purpose-built rental vacancy rate

$3.20 Average monthly lease for a purposebuilt rental unit (PSF $2,389)

+85K Total PBR units under construction and planned in the GT

Due to the GTA’s housing supply constraints, increasing immigration targets, and the strong/higher demands on both rental and ownership, these markets are becoming more expensive and less attainable. Purpose-built rentals have a key role to play in helping this housing crisis. More than ever, developers are starting to consider purpose-built rentals over resale, particularly in the luxury and premium rental markets. As a result, 2021 saw more purposebuilt units under construction across the GTA than it did in over three decades.

Word On The Street

By Tannaz Taghizadeh