Welcome to the month of July! Where the sun is out and, apparently, so are the rain clouds – as proven by the past couple of days. Stay dry readers… the sun will come out soon.
If you’re a LVT regular, you’re probably familiar with our monthly Condo Market Update blogs. Effective today, we’re doing something extra special for our LVT readers. In addition to the monthly sale stats, we will be posting monthly Rental Condo Market Updates! Landlords, Tenants, prospective renters- never fear, the blog post is here! What are we waiting for? Let’s get right into it.
Vaccination Tracker Update
As of Wednesday July 7th, 2021, 68.21% of the total Canadian population has received at least one dose of the COVID vaccine and 37.76% of the total Canadian population are fully vaccinated. As of June 30th, Ontario began step 2 of the reopening plan! In order to move to step 3, 70-80% of adults must be vaccinated with one dose and 25% must be vaccinated with two doses. Step 3 is on the horizon!!
Now, on to real estate! We saw an increase in total condo rentals year over year. Let’s delve into the numbers for our Liberty Village condo market in June and let them do the talking.
Attention Landlords and Renters!!
If you are think of renting out your condo this summer or fall 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 this summer or fall 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 June?
June 2021 saw a total of 111 condo rentals in Liberty Village. In comparison, June 2020 had 75 rentals. Incredible!! A 48% jump in condo rentals year over year. As predicted by the experts, the more the Canadian population became vaccinated, the more condo rentals would jump year over year. The experts were correct in their prediction and we are thrilled for Landlords! When comparing June 2021 stats to June 2019 stats, there is still a 70.73% jump in rentals year over year. This means that, rentals were 70.73% higher during the recovery of a pandemic than a “normal” month like June 2019. To summarize, year over year, the number of Landlords and Renters confident enough to enter the condo rental market increased by 48%, despite being almost 2 years into a global pandemic.
Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from June 2020 to June 2021? Let’s take a look at the average rental price for all types of condo rentals year over year.
The average rental price in June 2021 was $2,245 on the 111 rentals. The average rental price for the 75 rentals in June 2020 was $2,335. A 3.81% year over year decrease in rental price – great news for prospective renters! Landlords – don’t fret. If we look from a month-to-month lens and compare the lowest average rental price sine the beginning of the pandemic (February 2021) to June 2021, there has been a 13.27% jump in average rental price. To provide some perspective, if we look at an equivalent 4-month pre-pandemic span- February 2019 to June 2019), average rental prices only increased by 12.45%. So while average June 2021 rent prices might not be as high as they were in June 2020, they’ve been increasing 0.82% faster during the recovery of a pandemic. For Landlords, this means that rental prices are growing more rapidly than a pre-pandemic growth rate – a good indication that average rental prices will bounce back very quickly.
The average rental price in June 2021 was $2,245 on the 111 rentals. The average rental price for the 75 rentals in June 2020 was $2,335. A 3.81% year over year decrease in rental price – great news for prospective renters! Landlords – don’t fret. If we look from a month-to-month lens and compare the lowest average rental price since the beginning of the pandemic – February 2021 to June 2021 – there has been a 13.27% jump in average rental price. To provide some perspective, if we look at an equivalent 4-month pre-pandemic span- February 2019 to June 2019 – average rental prices only increased by 12.45%. So while average June 2021 rental prices might not be as high as they were in June 2020, they’ve been increasing 0.82% faster during the recovery of a pandemic. For Landlords, this means that rental prices are growing more rapidly than a pre-pandemic growth rate – a good indication that average rental prices will bounce back very quickly.
So, What Does This Mean for Tenants?
When analyzing the June 2021 market statistics, our best advise to prospective renters is to secure a rental today (or yesterday, if you can time travel). Rental prices are increasing very rapidly, so if you want to secure a lower monthly rate than 2020, it’s best to move quickly. Our next monthly update will provide a thorough analysis of July’s rental market, but if experience speaks for anything, the rental market is currently bonkers. We’re talking multiple offers, units being scooped up the same day they are listed and units going for a few hundred over their asking prices. 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, you may get nervous at the year-over-year slight decrease in average rental prices. Although, if we look at the bigger picture and quote the experts, “average rental prices will increase exponentially as more and more of the Canadian population becomes vaccinated. And we’re seeing that in real-time – average rental prices are growing at an even faster rate than pre-pandemic times. Condo rentals are currently a blazing hot commodity. They’re producing multiple offers, being scooped up the same day they are listed and going for a few hundred over their asking prices. So, our best advise to Landlords would be to list your unit today (or yesterday, if you can time travel). If your unit is currently Tenanted and/or you’re unable to jumpstart the process, waiting a few months won’t hurt either. We predict rent prices to continue to rise, so while we don’t recommend having your unit sit vacant, rest assured, you’re not missing out if you don’t list today. It can be especially worthwhile to touch base with a rental expert a few months before you’re ready to list. Our rental specialist, Kylie, will keep you abreast of all comparable leased units in the meantime, come up with a thorough marketing strategy and ensure you are on the perfect track to get top 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 next month, this Summer or the 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.
