“Everything good, everything magical happens between the months of June and August” – Jenny Han
How has everyone’s August been? Magical? Good? We’ve been enjoying the warmth of the sun and patio season.
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 July?
July 2022 saw a total of 100 condo rentals in Liberty Village. In comparison, July 2021 had 140 rentals- a 28.57% decrease in condo rentals year-over-year. We are certainly not surprised by the decrease in condo rentals. Why, you ask? Well, downtown Toronto is becoming more and more unaffordable. Those who chose live downtown last year may be opting to live outside of the downtown core to save on rent. But, we also have to remember that 100 rentals in a Summer month is still quite insane. Another factor may be that people are choosing to stay put, rather than move, so that they can maintain their rental rate or close to that. This is especially true if they secured a rental during “pandemic pricing”.
Now, let’s dive into month over month. When comparing July 2022 to June 2022, there was a 5.26% increase in condo rentals month over month. If you read our sale stats blog post, you know that condo sales decreased year over year and month over month. Although, the rental market is no mirror of the sale market. It seems, no matter the season, the rental market is going crazy. We’ll see later on with year-over-year prices, how crazy the market really is.
Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from July 2021 to July 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 July 2022 was $2,803 on the 100 rentals. The average rental price for the rentals in July 2021 was $2,307. A 21.5% year over year increase in rental price – holy cow, what a difference! Now, let’s reference back to the decrease in number of rentals year-over-year. Let’s say that a renter secured the $2,307 average last July. If they were thinking about moving, they would see that the new price for their same unit would be $2,803. So, there are likely a lot more pros to staying in your current unit with that sweet rate than paying 2022 market value and moving costs. Make sense now? Sure does.
The average rental price in July 2022 was $2,803 on the 100 rentals. The average rental price for the rentals in July 2021 was $2,307. A 21.5% year over year increase in rental price – holy cow, what a difference! Now, let’s reference back to the decrease in number of rentals year-over-year. Let’s say that a renter secured the $2,307 average last July. If they were thinking about moving, they would see that the new price for their same unit would be $2,803. So, there are likely a lot more pros to staying in your current unit with that sweet rate than paying 2022 market value and moving costs. Make sense now? Sure does.
Now, if we look at the average rental price through a month to month lens, there is a 0.32% increase from June 2022 to July 2022 – this is to be expected. Historically, rental prices have almost always increased slightly on a month-to-month basis, except during the peak of the pandemic or during slower season months.
So, What Does This Mean for Renters?
Now, we’re going to give two sets of advice – one, to those who are able to stay put, and the other, to those that MUST move. 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 July 2022 prices. Now, for those who MUST move, we would recommend waiting until September. If you cannot wait until September, then it is important to understand how competitive the current market is. Many renters move back to Toronto towards the end of the Summer to begin school or work in the Fall, so this makes mid-end Summer a very competitive, hot rental market. We are currently seeing units flying off the market in 2 hours with 3 offers, site unseen. It’s THAT crazy. Waiting until September allows you to avoid that craziness and compete in a more level-headed market. 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 extremely happy that you decided to invest in real estate. Prices are up month over month and by heaps and bounds, year over year. If priced correctly, units are going at lightning speeds at asking price or above. It IS an absolutely “Landlord’s Market”. It is a fantastic time to rent out your unit with demand being so incredibly high with students securing units for school or those starting new positions to begin in the Fall. If your Tenant doesn’t move out until September, October, or later, don’t fret. We predict that prices will continue to rise at a fantastic rate, especially with supply not being able to keep up.
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 Summer market or early Fall 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.
