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Rents for condominiums in the Toronto area skyrocketed in the second quarter amid a slump in leasing activity and a severe lack of supply.

Average rents rose 11.2 per cent in the second quarter compared to the same period last year, hitting $2,302 for an average unit of 732 square feet, according to Urbanation Inc., a firm that collects and analyzes data on the Toronto condo market.

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New condominium project registrations or units recently completed – a strong source of new rental supply — plummeted by 28 per cent to 3,264 units. And the number of condominiums changing hands fell for the third straight quarter with just 7.8 per cent of the Greater Toronto Area’s stock turning over the past 12 months – the lowest level in five years.

“Current rental supply has fallen to a critically low level,” said Shaun Hildebrand, President of Urbanation. “Demand has been pouring into the market while rental construction still remains relatively low, condo projects are taking longer to reach completion, not as many investors are offering their units for rent, and tenants aren’t moving as often.”