The GTA's evolving rental landscape

Picture a rental market where tenants find themselves in a stronger negotiating position with abundant choices and stabilized rents. This scenario is unfolding now across the Greater Toronto Area’s (GTA) dynamic rental scene. As we explore TRREB’s Q2 2024 Rental Market Report, you’ll discover why this is a pivotal moment for renters, landlords and investors alike.

Increasing options

In the second quarter of 2024, condo rentals were up by more than 25 per cent compared to the same period last year. This wasn’t just about more leases being signed; it was accompanied by a 51-per-cent increase in rental listings. This influx provided renters with more options and a slight decrease in rental prices.

The average rent for a one-bedroom condo dropped to $2,452, down 3.1 per cent from Q2 2023. Two-bedroom condos saw a similar trend, with rents decreasing by 1.9 per cent to an average of $3,178.

However, this current landscape is more than a transient phase. “Demand for rental housing will remain strong for the foreseeable future,” says Jason Mercer, TRREB’s chief market analyst. “While the increase in available inventory over the past year has resulted in slightly more affordable rents, it is important to understand that this relief could be short-lived if we don’t see a steady stream of new rental units coming online, both in terms of purpose-built rental and investor-owned condo rental units.”

Affordability challenges

The GTA’s population is growing at a record pace, creating ongoing rental housing demand. Affordability challenges with mortgage rates continue to push potential homebuyers into the rental market, adding further pressure.

For more on the state of the GTA real estate market, 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.