How is it already May?! It feels like this year is just flying by.
We’re thrilled that the weather is warming up, patios are opening up, kids are playing outside and the birds are chirping.
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 massively popular blogpost- Everything You Wanted to Know About Renting Your First Condo in Liberty Village.
How Many Condos Rented in Liberty Village in April?
April 2022 saw a total of 109 condo rentals in Liberty Village. In comparison, April 2021 had 134 rentals- a 18.66% decrease in condo rentals year-over-year. We can put this decrease into context when we look at the average monthly rental prices in April 2022 versus April 2021. Spoiler alert: prices were much lower, given it was one of the peak months of what we coined “pandemic pricing”. We will go into detail about it later on in this post – so keep reading for that! Additionally, we’re seeing that a lot of people are choosing to stay put, rather than move, so that they can maintain their rental rate. This is especially true if they secured a rental during “pandemic pricing”.
Now, let’s dive into month over month. When comparing April 2022 to March 2022, there was a 11.38% decrease in condo rentals month over month. If you read our sale stats blog post, you know that condo sales also decreased year over year and month over month. Similar to the sale market, we’re seeing that we had an overactive Winter market, which has lead to an underwhelming Spring market. The Spring market is, historically, the busiest time for real estate, so this is definitely something we are not accustomed to.
Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from April 2021 to April 2022? Let’s take a look at the average rental price for all types of condo rentals year over year.
The average rental price in April 2022 was $2,552 on the 109 rentals. The average rental price for the rentals in April 2021 was $2,052. A 24.36% year over year increase in rental price – wow, what a difference! Now, this is the part where we put the year-over-year number of condo rentals into context. As demonstrated above, prices were 24.36% lower, this time, last year. Naturally, Renters were eager to secure an amazing deal – something that NEVER happens in a city like Toronto. This explains why the number of rentals were higher in April 2021 – people won’t ever pass up on a GOOD deal! Especially, considering, many thought that 2021 would be a new start for increasing rental prices. In this way, many rushed to grab a rental deal before it was seemingly over with. Earlier on in this post, we also talked about less people moving than usual. It is commonplace for prices to increase, year over year, and yet, some people still choose to move. When we look at this year compared to last year, there is a massive 24.36% difference. Most renters will look at this year over year difference and decide that staying put is the best financial option. This can explain the year over year difference in amount of rented units.
The average rental price in April 2022 was $2,552 on the 109 rentals. The average rental price for the rentals in April 2021 was $2,052. A 24.36% year over year increase in rental price – wow, what a difference! Now, this is the part where we put the year-over-year number of condo rentals into context. As demonstrated above, prices were 24.36% lower, this time, last year. Naturally, Renters were eager to secure an amazing deal – something that NEVER happens in a city like Toronto. This explains why the number of rentals were higher in April 2021 – people won’t ever pass up on a GOOD deal! Especially, considering, many thought that 2021 would be a new start for increasing rental prices. In this way, many rushed to grab a rental deal before it was seemingly over with. Earlier on in this post, we also talked about less people moving than usual. It is commonplace for prices to increase, year over year, and yet, some people still choose to move. When we look at this year compared to last year, there is a massive 24.36% difference. Most renters will look at this year over year difference and decide that staying put is the best financial option. This can explain the year over year difference in amount of rented units.
Now, if we look at the average rental price through a month to month lens, there is a 4.89% increase from March 2022 to April 2022. We saw that last month, rental prices remained the same month over month. If you remember, we told all potential renters to snag a quick deal. We proposed that monthly rental prices would increase and not stay the same – we were right!
So, What Does This Mean for Renters?
When analyzing the April 2022 market statistics, our advice for Renters is to secure a deal quickly if you can. Average rental prices remained the same last month, meaning you could’ve snagged a unit for a February price in March. Now, prices have increased month over month, so there is no longer a deal to be had. Although, if you want to beat the prices of next month, secure a unit NOW. The number of rentals decreased from March to April 2022 which can actually put more pressure on prices. What does this mean? When there is a decrease in inventory and demand stays the same or increases, prices can go up. We called last month’s rental market perfectly healthy and we’re calling this month’s a more competitive one! If you want to get your condo search started now, email our rental specialist Kylie or fill out our Contact Form.
So, What Does This Mean for Landlords?
If you’re a Landlord, we told you not to worry about last month’s lack in price change – and we were right. Prices increased, month over month, for April. Inventory decreased, so this also explains why prices have increased and why we predict they’ll continue to do so. It’s a great time for you to list your unit, as a Landlord, as we are moving farther into the Spring market and where inventory is at a low.
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 Spring market or early Summer 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.
