Rent prices in Toronto may finally be easing somewhat, but the typical spot in the city will still run you about a costly $2,600 a month, making the 6ix far from one of the province's best cities for tenants.

One property type, though, is seeing notable declines in mean rent costs: condos, which are likewise taking a nosedive in the real estate market, at least as far as sales are concerned.

GTHA Rents Decline Annually for First Time in 3 Years.

Urbanation's Q2-2024 Rental Market Results:https://t.co/oSJQVFlz4T pic.twitter.com/qbbdEtaynV

— Urbanation Inc. (@Urbanation) July 30, 2024

Per a new report from Urbanation, average condo apartment rents in and around the city have now fallen for the first time in three years when examined on a year-over-year quarterly basis, hitting $3.97 per square foot (which equals $2,723 for a 686-square-foot space) in Q2 of 2024.

While this is only 1.2 per cent lower than prices at the same time last year, it's still a trend in the opposite direction than what the authority has been seeing.

"The overall decline in condo rents occurred despite strong demand during the quarter. The number of condo lease transactions in the GTHA reached a record high of 16,169 units in Q2, increasing 29 per cent annually and rising 60 per cent above the 10-year average," the firm writes.

While I feel for the condo owners, in the long run this is a good thing. Housing should never be an income producing investment.

— kelly (@BFLMouse) July 26, 2024

"At the same time, however, the total number of condos listed for rent during Q2 increased 47 per cent year-over-year to 21,695 units. Listings surged last quarter as the number of newly registered condos increased 82 per cent from a year ago to 8,380 units."

This reflects the surplus of condos sitting for sale on the market in the region, too, though buying activity has fallen off a cliff  to a 27-year low while prices still haven't changed all that much.

As far as unit sizes, studios are seeing the biggest price drop (3.9 per cent, to $5.18 per square foot), compared to three-bedroom units, for which average prices fell only 0.6 per cent from Q2 2023 (to $3.83 per square foot).

Condo rent rates in the city proper have also plunged slightly more than in the 905 (2.1 per cent vs. 2.0 per cent), though they, of course, remain more expensive ($4.10 per square foot compared to $3.63 per square foot).