Market update June 2024: GTA rental market’s future uncertain

The home sales market achieves balance while property managers benefit from record-high rent prices. However, affordability concerns may drive renters away from Ontario, particularly the GTA.

• The Canadian Real Estate Association (CREA) reports an average national home price of $703,446 in April 2024 – a 0.7% monthly increase (but down 1.8% year over year).

• Ontario continues to have one of the highest average home prices across the provinces (second only to British Columbia) at $900,161.

• CREA also reports a 1.7% decrease in month-over-month home sales in April.

• For the month of April, the sales-to-new-listings ratio (SNLR) was 53%, meaning the national housing market is almost perfectly balanced.

• “After a long hibernation, the spring market is now officially underway,” says James Mabey, newly appointed Chair of CREA. “Mortgage rates are still high, and it remains difficult for a lot of people to break into the market but, for those who can, it’s the first spring market in some time where they can shop around.”

• The Canada Mortgage and Housing Corporation (CMHC) reports a 1% decrease in nationwide housing starts, from 242,267 in March to 240,229 in April. Multifamily and single-detached starts fell 12% in Toronto.

• “This is unsurprising as we continue to see last year’s challenging borrowing conditions reflected in multi-unit housing starts numbers,” says Bob Dugan, CMHC’s Chief Economist. “We expect to see continued downward pressure in these large centres.”

• Will Dugan’s prediction come true, or will the provincial government's initiatives to accelerate purpose-built rental construction boost housing starts in the GTA?

• Meanwhile, the national average asking rent rose by $7 in April, reaching a near-record high at $2,188, according to Rentals.ca

• Ontario was the only province to record month-over-month (-0.3%) and year-over-year decreases (-0.7%) in asking rents for purpose-built and condominium apartments, taking them to an average of $2,404.

• A contributing factor to this trend could be renters migrating to other markets that they deem more affordable.

More rental market headlines

Edmonton a top contender for Toronto residents seeking housing affordability – CBC

‘We need to occupy the house’: Ontario landlord says tenant won’t leave – Global News

Ongoing rent strike in Weston neighbourhood reaches one year anniversary – CityNews