Rental Market Update

In June, the asking rents for purpose-built and condominium rental apartments saw a modest decrease of 1.0% compared to the previous month, averaging $2,146. Despite this monthly decline, apartment rents have experienced a significant year-over-year increase of 9.0%, primarily driven by an 11.0% rise in purpose-built rental prices, which now average $2,121. In contrast, condominium apartment rents saw a more modest annual increase of 2.6%, with the average rent reaching $2,320.

Breaking it down further, studio rents for condominiums exhibited a notable decrease, dropping by 5.1% annually to an average of $1,823. However, purpose-built studio rents surged by an impressive 14.6%, averaging $1,613. This trend of robust annual growth in purpose-built rentals was consistent across all unit types, with increases exceeding or matching 10%. For example, one-bedroom units in purpose-built rentals experienced substantial growth, further highlighting this trend.

In the condominium rental market, rent growth was particularly pronounced for larger units. While smaller units saw more modest increases, rent growth accelerated with the size of the unit, peaking at 8.0% for three-bedroom units. This indicates a strong demand for larger living spaces within the condominium rental sector.

Overall, these figures reflect a dynamic rental market where purpose-built rentals are seeing substantial increases across all unit types, while condominium rentals are experiencing more varied growth, particularly favoring larger units. The divergence in growth rates between purpose-built and condominium rentals underscores the shifting preferences and demands within the rental market, offering a range of opportunities and challenges for both renters and property owners.