Condominium market research firm, Urbanation, has released its Q3 2013 rental market results this week. The results reveal that Toronto's condominium rental market remains strong as the number of units rented through the MLS system increased by 39% to 6,451 units over last year. The total number of transactions for 2013 is also expected to surpass 20,000 units by the end of the year, compared to 15,355 units in 2012.

Library District and Cityplace Condos, image by JPbombales

Furthermore, average rents, on a per square foot basis, grew by 4.2% to $2.41. However, the annual growth in overall rents remained at 1.6% with an average monthly rate of $1,875 due to an inflow of smaller units entering the market.

According to Urbanation, the increase level of investor-purchased pre-construction condos has had a positive impact on the condominium rental market with supply expected to remain strong over the next few years. The strong performance has also revealed a significant demand for new rentals. Urbanation's Senior Vice President states, "The rapid growth in activity indicates a significant amount of pent-up demand for new rentals, which has allowed rents to move higher and further encourage investors to hold onto their properties.”