The document reports that Toronto's condominium apartment rental market remains strong with a 49% increase in rental listings and average rents of $2.26 per square foot. Demand for rental units is very high with a 78% lease-to-listing ratio however annual rent growth has slowed to 3.5% likely due to an anticipated increase in rental unit supply that could flood the market. The summary concludes by providing contact information for Urbanation's rental market reports and consulting services.

1. TORONTO CMA
CONDOMINIUM APARTMENT
MARKET OVERVIEW
we’ve got the answers

2. Toronto’s Condominium Apartment
Rental Market Remains Strong
• 49% Quarterly Increase in Activity on MLS in Q2-2012.
• Index Rents up 3.5% Annually to $2.26 psf in the Toronto
CMA overall.
• Lease-to-Listings Ratio of 78% - Extremely Strong
Demand.
• Average Suite took 19 Days to Lease in the Second
Quarter, compared to 24 in Q1-2012.

3. Toronto CMA Rental Markets
Condominium Rental Purpose-Built Rental
Market Apartments
1,259 Projects
223,000 Units 307,000 Units
Estimated rental – 25%
56,000
$1,777 per month avg 64% larger rents
$1,086 per month avg
786 sf
$2.26 psf
3,000 - 4,000 rental
transactions on MLS per
Quarter
Source: UrbanRental, Toronto Real Estate Board, CMHC

4. Approximately 14,000 Condo Rental Transactions
through MLS in 2011, 7,500 in First Half of 2012
Figure 2
Condominium Rental Transactions and Index Rent by Quarter
Toronto CMA : Q2-2011 to Q2-2012
6,000 $2.30
$2.24 $2.26
$2.23 $2.25
$2.21
$2.18
$2.20
4,000
4,500 transactions
$2.15
in Q2-12 - up 49%
$2.10
quarterly and 18%
$2.05
2,000 annually.
$2.00
$1.95
3,750 4,378 2,902 2,984 4,439
0 $1.90
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Source: Urbanation Inc., Toronto Real Estate Board

5. Demand for Condo Rental Units is Very Strong with
78% Lease-to-Listings Ratio, Not Translating into
Big Increase in Index Rents
Figure 3
Annual Index Rent Appreciation and Lease-to-Listings Ratio by Quarter
Toronto CMA : Q2-2011 to Q2-2012
8% 90%
79.4% 77.5%
80%
7%
63.4% 64.8% 66.3% 70%
6% 60%
50%
5%
40%
4% 30%
20%
3%
10%
5.5% 6.9% 5.9% 5.9% 3.5%
2% 0%
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Annual Appreciation LLR
Source: Urbanation Inc., Toronto Real Estate Board

6. Annual Index Rent Growth is Typically Lower than
Appreciation in New and Resale Markets
Annual Index Price and Index Rent Growth in New, Resale & Rental
Condominum Apartment Markets
Toronto CMA : Q2-11, Q1-12 & Q2-12
9.0%
8.0%
8.1%
7.0% 7.5%
7.2%
6.0%
5.0% 5.7% 5.5% 5.9%
4.0%
4.0%
3.0% 3.7% 3.5%
2.0%
1.0%
Q2-2011 Q1-2012 Q2-2012
New Resale Rental
Source: Urbanation Inc., Toronto Real Estate Board

7. Monthly Carrying Costs for Average New and Resale
Condominiums Versus Average Condo Rents
– 20% Down, 1% Taxes, Average monthly maintenance, 3% Interest rate
Monthly Carrying Costs per Month for Average New & Resale Unit
plus Average Condominium Rental Rates by Quarter Q2-2012
Toronto CMA: 2011 to 2012 YTD
$2,000
$1,950 $1,932 New: 751 sf,
$1,900 $395,000,
$1,850 $1,814 $1,865 $0.49 psf
$1,800
$1,750
$1,765 $1,777
$1,700 Resale: 910 sf,
$1,650 $1,686 $370,000,
$1,600
$0.58 psf
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
New Resale Rental Rental: 786 sf
Source: Urbanation Inc., Toronto Real Estate Board

8. Monthly Carrying Costs for Constant Sized New,
Resale and Rental Condominiums
– 20% Down, 1% Taxes, Average monthly maintenance, 3% Interest rate
Monthly Carring Costs per Month for an 800 sf New & Resale Unit plus
Average Rent for 800 sf Condominium Apartment by Quarter Q2-2012
Toronto CMA: 2011 to 2012 YTD
$2,100 800 sf
$1,985
$2,000
$1,900 $1,825 New: $525 psf,
$1,808
$1,800 $420,000, $0.49 psf
$1,685 $1,699
$1,700
$1,600 Resale: $407 psf,
$1,607
$1,500 $326,000, $0.58 psf
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
New Resale Rental Rental: $2.26 psf
Source: Urbanation Inc., Toronto Real Estate Board

9. Plenty of Supply to Enter Rental Condominium
Market over Next Two Years
• Approximately 50,000 completions scheduled for 2013
and 2014.
• Up to 50% of these suites could enter the rental pool, or
25,000 units.
• This would represent a 45% increase in the condominium
rental market in the CMA – from 56,000 to 81,000.
• Can all these units be absorbed? If rents are not going up
significantly when in with short supply, what will occur
with excess supply?

10. For information about Urbanation’s
Condominium Market Survey, UrbanRental
Report or our Consulting Services please
contact:
Ben Myers
416-922-2200 ext.243
Ben@urbanation.ca
www.urbanation.ca
www.twitter.com/urbanation