Condo Rentals: How’s The Liberty Village Rental Market Looking? Liberty Village Condo Market Update

Condo Rentals: How’s The Liberty Village Rental Market Looking? Liberty Village Condo Market Update | October 2021

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“It looked like the world was covered in a cobbler crust of brown sugar and cinnamon.” – Sarah Addison Allen, First Frost

November… what’s doing?! The monthly quote tradition… we told you we’d continue it. It’s sure starting to get chilly, but boy does it look beautiful outside! We loved this quote from Sarah Addison Allen’s First Frost and thought it perfectly encapsulated November scenery in Toronto. A cobbler crust of brown sugar and cinnamon…. who’s hungry? I am!

We are well into the Fall market, with December 21st being the first “official” day of Winter. In non-COVID times, we typically see the real estate market pick up in Fall. While not as crazy as Spring, historically, Fall has proven to be the second busiest time for the real estate market. Now, let’s talk about October!

As of Thursday November 4th, 2021, 78.16% of the total Canadian population has received at least one dose of the COVID vaccine and 74.22% of the total Canadian population are fully vaccinated. That’s more than 58,904,422 doses of approved COVID-19 vaccines that have been administered across Canada.

A Plan to Safely Reopen Ontario and Manage COVID-19 for the Long-Term has been released – which is far more news than we’ve had over the past couple of months! The plan outlines the gradual approach to lifting remaining public health & workplace safety measures by a target date of March 2022. Over the next 6 months, Ontario will slowly lift all remaining measures, including wearing face coverings in indoor public settings & removing the provincial requirement for proof of vaccination. Of course, should any new COVID-19 variants appear, increases in hospitalizations occur or increases in ICU occupancy and rapid increases in transmission take place, the plan will be re-evaluated as needed.

We mentioned last stats blog post that October 25th, 2021 marked the date that capacity limits were lifted in the vast majority of settings where proof of vaccination is required. Limits were also lifted in certain outdoor settings. On November 15th, 2021, the government intends to lift capacity limits in remaining higher-risk settings where proof of vaccination is required. So, that is something for some to look forward to.

And that’s what you missed on… Reopening Ontario!

Now, on to real estate! This month, we saw just a substantial decrease in total condo leases year over year and a fantastic increase in average rental price both year-over-year & month-over-month. Let’s delve into the numbers for our Liberty Village condo market in September and let them do the talking.

Attention Landlords and Renters!!

If you are think of renting out your condo this Fall or Winter 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 Fall or Winter 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 September?

October 2021 saw a total of 56 condo rentals in Liberty Village. In comparison, October 2020 had 152 rentals. Very interesting! We can put this decrease into context when we look at the average monthly rental prices in October 2021 versus October 2020. 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 look out for that! This is a 63.16% decrease in condo rentals year-over-year. When comparing October 2021 to October 2019 stats (when the pandemic was not even a figment in our imaginations), there is a substantial 69.7% jump in rentals! This means that, rentals were nearly 70% higher during the recovery of a pandemic than a “normal” month like October 2019. As you can see, perspective is VERY important. Sometimes, the numbers can be surprising at first glance, but if we delve deeper, we can clearly see why the number of condo rentals decreased.

Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from October 2020 to October 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 October 2021 was $2,458 on the 56 rentals. The average rental price for the 152 rentals in October 2020 was $2,063. A 19.15% year over year increase in rental price – amazing news for Landlords! Now comes the part where we take the year-over-year number of condo rentals into context. As shown above, prices were 19.15% lower, this time, last year. Naturally, Renters were eager to secure a good ‘ole deal – something that NEVER happens in a city like Toronto. This explains why the number of rentals was so insanely high – people just love a bargain! Now, if we look at the average rental price through a month to month lens, there is also a 1.03% increase in average rental price month over month. More great news for Landlords! Renters – don’t fret. If we bring back October 2019, in comparison to October 2021 stats, prices are still down 1.09%. This means, as a Renter, you can still get that bargain you were looking for. So, while prices have risen compared to October 2020’s “pandemic pricing”, prices are still lower when we look at a “normal” time like October 2019.

The average rental price in October 2021 was $2,458 on the 56 rentals. The average rental price for the 152 rentals in October 2020 was $2,063. A 19.15% year over year increase in rental price – amazing news for Landlords! Now comes the part where we take the year-over-year number of condo rentals into context. As shown above, prices were 19.15% lower, this time, last year. Naturally, Renters were eager to secure a good ‘ole deal – something that NEVER happens in a city like Toronto. This explains why the number of rentals was so insanely high – people just love a bargain! Now, if we look at the average rental price through a month to month lens, there is also a 1.03% increase in average rental price month over month. More great news for Landlords! Renters – don’t fret. If we bring back October 2019, in comparison to October 2021 stats, prices are still down 1.09%. This means, as a Renter, you can still get that bargain you were looking for. So, while prices have risen compared to October 2020’s “pandemic pricing”, prices are still lower when we look at a “normal” time like October 2019.

So, What Does This Mean for Renters?

When analyzing the October 2021 market statistics, and in quoting our last blogpost, “our best advice to prospective renters is to secure a rental today (or yesterday, if you can time travel).” Prices are climbing on a month-by-month basis, but prices have not yet returned to “normal”. So, if you want to secure a lower monthly rate than 2019, it’s best to move at rapid speed. We called last month’s rental market absolutely bonkers. This month, we’re calling it a healthy rental market- still multiple offers, units being scooped up within a day or days of being listed and units going at or 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, the solid year-over-year increase in average rental prices should put a smile on your face! To quote the experts, “average rental prices will increase exponentially as more and more of the Canadian population becomes vaccinated.” Even though the numbers are not quite what they were pre-pandemic, they are very close to matching them. And it’s just a matter of time before they pass pre-pandemic numbers! What’s more exciting for Landlords is that there is currently very little inventory when comparing last year’s quantity of rental listings. Naturally, a lack in supply and large demand will improve the average value of condos. So, our best advice to Landlords, and in quoting our last blogpost, “would be to list your unit ASAP.” If your unit is currently Tenanted and/or you’re unable to jumpstart the process, waiting a few months won’t hurt your chances either. Set yourself up for success by touching base with a rental expert a few months before you’re ready to list. 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 Fall or the Winter 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.