Liberty Village Condo Rental Market Update | February 2023
Happy March, LV Readers! We’re 3 months down and 9 months to go for 2023. I’ve heard that a lot of people are saying we barely got a Winter this year – but my back says differently. I guess that’s the benefit of living in a condo, right? No shovelling! But, I have heard reports that we have not seen the last of the snow. Not that it affects you, you smart condo dweller. Alright, let’s get into the stats. But first…
Attention Landlords and Renters!!
If you are think of renting out your condo and you’d like to learn more about the services we offer, have a look at our hugely popular blogpost- Landlord Services in Liberty Village.
If you are thinking of renting a condo and you don’t know where to start, take a look at our hugely popular blogpost- Everything You Wanted to Know About Renting Your First Condo in Liberty Village.
How Many Condos Rented in Liberty Village in February?
February 2023 saw a total of 74 condo rentals in Liberty Village. In comparison, February 2022 had 99 condo rentals- a 25.25% decrease in condo rentals year-over-year. Wait?! Why would there be a decrease in condo rentals year over year? If you’re scratching your head right now, don’t worry, we are too. When we reference the sales blogpost, we recollect that there was a 51.92% decrease in condo sales year over year. If your first thought was, “maybe there was a decrease in condo rentals because there was a surge in condo sales”. But alas, it’s not that simple, because we had decreases in both sectors. Now, we are going to look at rental volume later on in this blog post, but we are highly suspecting that prices went up… considerably. And we all know what happens when prices go up – affordability goes down. So, it may be that people are either 1) not able to afford downtown Toronto prices or 2) don’t feel the cost is worth it, so they’re 3) staying put in their current places or 4) moving outside of the city. Which is something we saw, in heaps and bounds, during the pandemic. When remote work became the norm, folks found it unnecessary to pay the price of downtown living, so they moved east, west and north. Remote work is definitely more normalized now, but many people are being asked to return to work in-person. If there’s a choice, however, a lot of folks are looking at the market rental rate and remarking that the prices are too steep.
Now, let’s dive into month over month. When comparing January 2023 to February 2023, there was a 4.23% increase in condo rentals month over month. We’re talking about a pretty marginal increase, but we did expect this slight month over month increase. Why? Well, we’re going to sound like a broken record player, but as we get further away from the cold weather and closer to Spring, the market tends to pick up. Moving is much nicer when there is no snow on the ground and renters and buyers tend to come out of winter hibernation.
Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from February 2022 to February 2023? Let’s take a look at the average rental price for all types of condo rentals year over year.
The average rental price in February 2022 was $2,433 on the 99 rentals. The average rental price for the rentals in February 2023 was $2,736. A 12.45% year over year increase in rental price – that’s a substantial increase! And no wonder we saw a decrease in year over year condo rentals, when the average price jumped 12.45%. If we think about it, the average Landlord wants the Tenant to make AT LEAST 2.5 times the monthly rent. So, for Feb 2022, the average Tenant would’ve had to make at least $72,990/year. For Feb 2023, to afford the average rental, you would’ve had to make $82,080/year. Holy moly! This becomes even more frightening when we consider that the average downtown Toronto salary in Canada is $37,050/year. So, the average downtown Torontonian can afford a monthly rent of $1,235. Yeah, so, we DEFINITELY understand why folks are flocking to other parts of Ontario and CERTAINLY why rentals have gone down year over year.
The average rental price in February 2022 was $2,433 on the 99 rentals. The average rental price for the rentals in February 2023 was $2,736. A 12.45% year over year increase in rental price – that’s a substantial increase! And no wonder we saw a decrease in year over year condo rentals, when the average price jumped 12.45%. If we think about it, the average Landlord wants the Tenant to make AT LEAST 2.5 times the monthly rent. So, for Feb 2022, the average Tenant would’ve had to make at least $72,990/year. For Feb 2023, to afford the average rental, you would’ve had to make $82,080/year. Holy moly! This becomes even more frightening when we consider that the average downtown Toronto salary in Canada is $37,050/year. So, the average downtown Torontonian can afford a monthly rent of $1,235. Yeah, so, we DEFINITELY understand why folks are flocking to other parts of Ontario and CERTAINLY why rentals have gone down year over year.
Now, if we look at the average rental price through a month to month lens, there is a 1.97% decrease from January 2023 to February 2023. Yep, sounds about right. Lack of demand, when there is a good amount of supply can slightly lower the prices. And that’s exactly what happened.
So, What Does This Mean for Renters?
For the last several months, we gave you two sets of advice – one, to those who are able to stay put, and the other, to those that MUST move. We said, “if you are able to stay put, stay put. We understand that this isn’t the case for everyone. Some people have to move downtown for a new job, school, an ending lease, etc. But, if you’re able to stay in your current place, that is the best option. Why? Because your current monthly rent will be significantly less than the same unit with current prices. Now, for those who MUST move, now is a good time. We saw that prices decreased slightly month over month, so you can get a tiny deal. Keep in mind, though, that the market historically picks up as the weather gets warmer – and warmer it is getting (well, that depends on the day).
If you want to get your condo search started now or in the near future, email our rental specialist Kylie or fill out our Contact Form.
So, What Does This Mean for Landlords?
If you’re a Landlord, you’re very excited to see the substantial year over year increase. The slight decrease month over month – don’t worry about that. There’s ups and downs to everything, but rental prices have been on the uppity up since the peak of the pandemic. Now, we hear you, those with variable mortgages are feeling the brunt of the increases. Good news, though, that variable interest rates are holding steady (as per the announcement March 8th, 2023). Like most years, demand will likely soar and supply will be limited.
Set yourself up for success by touching base with a rental expert as soon as possible. Our rental specialist, Kylie, will keep you privy to all comparable leased units in the meantime, prepare a thorough marketing strategy and ensure you are on the best track to get major dollar for your unit. To learn more about the Landlord services we offer, have a look at our hugely popular blogpost- Landlord Services in Liberty Village.
Any predictions for the remainder of the Winter or Spring market? Let us know in the comments below.
If you have any specific questions about the market or are curious as to how this relates to you, get in touch. Email our rental specialist Kylie or fill out our Contact Form.
