Rents, meanwhile, have also been on the way down. Across all unit types, average rents fell by 3% last month in Toronto. One-bedroom units saw a 5% decline, while two-bedroom rents dropped by 7%.
That mirrors a national trend: Vancouver, Halifax, Montreal, Calgary, and Edmonton all saw average rents fall in August, according to Rentals.ca, amid a wider cooldown in the housing and mortgage markets as a whole.
Toronto definitely won’t see strong price appreciation in the condo sector during the next couple of years, according to Nanowski, with rents in the same boat.
“A lot of developers are trying to switch their condo units that aren’t viable, and can’t meet their pre-sales targets, into rental units,” he said. “Additionally, roughly half of condos in the GTA are rented out.
“So the under-construction inventory that’s getting worked through will continue to push down rents as well.”