A dynamic shift looming in GTA's rental market supply and demand

The GTA rental market is changing. The Toronto Regional Real Estate Board’s (TRREB) latest Rental Market Report uncovers the number of rental transactions and new listings, and reveals the outlook for both renters and landlords alike.

In the first quarter of 2024, rental transactions reported through TRREB’s MLS System increased by over 19 per cent compared to the same period last year, totaling 12,541. This surge reflects the growing demand for rental housing in the GTA, driven by an expanding population and evolving housing needs.

Substantial growth

Over the same time period, rental listings rose 51 per cent year-over-year. This substantial growth in inventory is providing renters with more options, leading to a more balanced market and stabilizing rental prices. The average rent for a one-bedroom condo dipped slightly to $2,441, while the average two-bedroom rent remained steady at $3,139.

While the condo rental market has been better supplied recently, the record pace of population growth expected for the foreseeable future in the GTA will require a sustained pipeline of new rental supply. This new supply will need to be a combination of new purpose-built rental stock and individual investor-owned units.

Looking forward, TRREB is expecting to see an increasing number of renters making the move into homeownership over the next year as borrowing costs start to trend lower. Recent polling from Ipsos for TRREB supports this view.

Informed decisions

For both landlords and renters, understanding these trends is vital for making informed decisions about pricing and managing rental properties. The rental market has certainly been in flux over the past year, and this will continue moving forward with changes in borrowing costs and strong population growth.

For more detailed insights, read TRREB’s full Rental Market Report. You can also check out our monthly Market Watch. We break down prices, sales and new listings each month with an easy-to-glance report. Visit trreb.ca for the latest look into the housing market and to connect with a TRREB member realtor.