Steve Nease
Demand for rental condominium apartments in Oakville showed strong growth during the third quarter of 2023, according to the Toronto Regional Real Estate Board (TRREB).
However, the demand for townhome rentals experienced a decline during the same period. Rental prices for both apartments and townhomes have surged significantly.
How big is the surge? The average two-bedroom apartment in Oakville is now renting for $3,224 per month.
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According to TRREB, there was a substantial increase in the number of leased condominium apartments in Oakville during the third quarter of 2023.
A total of 341 units were leased through TRREB's MLS® System, representing a growth rate of over 32 per cent compared to the third quarter of 2022.
Simultaneously, the supply of rental units also saw a notable increase of more than 50 per cent.
The rental prices for apartments in Oakville have continued to surpass the inflation rate across various unit types:
- The average cost for a bachelor apartment in Oakville reached $2,150 per month, marking a 4.8 per cent increase compared to the same period in 2022.
- One-bedroom apartments saw a 5.9 per cent increase, with the average price reaching $2,483.
- Two-bedroom apartments experienced the highest surge in rental prices, rising by 10.7 per cent to an average of $3,224.
- Three-bedroom apartments also witnessed significant growth, reaching an average price of $3,583, representing a 13.2 per cent increase from the previous year's third quarter.
In contrast to the surge in demand for rental condominiums, the demand for townhome rentals experienced a decline.
Only 67 townhomes were leased in Oakville during the third quarter of 2023, compared to 88 in the same period of 2022, representing a decrease of over 23 per cent. The number of new listings for townhomes also dropped by 15 per cent, signalling a potential reduction in supply.
Like apartment rentals, the prices for townhome rentals in Oakville have outpaced inflation:
- A two-bedroom townhome in Oakville realized a 9 per cent increase in rental prices, reaching an average of $3,024 during the third quarter of 2023.
- Meanwhile, the average rental price for a three-bedroom townhome increased by over 5 per cent to $3,668.
The strong rent growth and the potential introduction of tighter regulations surrounding vacant units and short-term rentals have motivated many investor-owned units to be listed for rent.
However, despite the increase in the supply of rental units, competition among renters remains robust enough to sustain rent increases above the inflation rate, according to TRREB Chief Market Analyst Jason Mercer.
