Condo rental rates make 'scary' jump of more than 7 per cent in third quarter, says TREB

The cost of renting a one- or two-bedroom condominium in Toronto grew substantially in the third quarter of this year, compared with the same time in 2015, a new report shows.

New numbers from the Toronto Real Estate Board (TREB) show the average rent for a one-bedroom unit rose 7.2 percent to $1,777, while the average rent for a two-bedroom unit was up 7.9 per cent to $2,419.

The findings come from TREB's third-quarter rental market report, which found that the number of condominium unit rentals on its multiple listing system were down by 4.8 per cent on a year-over-year basis to 9,164, compared to 9,629 at the same time last year.

TREB's director of market analysis Jason Mercer said in a release that rental market conditions around condominiums "tightened substantially" in the third quarter of this year. Mercer says the numbers indicate that competition between renters heated up, contributing to rent increases well above the inflation rate.

For some, the increases mean having to make difficult decisions.

Karlene Nation, in her 50s, is looking to move into a downtown rental just east of Yonge Street but says finding an affordable option is nearly impossible.

"It's all small, $1,800 and up month and in some units they don't even have washers and dryers," Nation says. "You could have rented something, say, two years ago or a year-and-a-half ago for $1,500 a month."

"If you're finding that 60 or 70 per cent of your income is going to rent, then you're cutting back in a lot of other areas. It's a problem," she says.

Britney Thompson, 28, says she's noticed prices jump by about $400 per month over the past couple of years.

"I'm a professional and I have a good job with a steady income but I don't think I'm anywhere near where my parents were when they were 28 and they were able to afford a three-bedroom house in the suburbs or even a nice condo in the city," Thompson said.

"It's kind of scary."