June 27, 2022
Market Trends
RYPM
After months of sustained increases, it seems there’s no
stopping rent prices in the Greater Toronto Area. A new report from Bullpen Research &
Consulting and TorontoRentals.com found that rent prices in the GTA
jumped a noticeable 5.7% from April to May — the largest month-over-month
increase in more than three years.
Rent prices now sit 16.5% higher than they did one year ago,
with prices for all property types averaging to $2,327 per month — up from the
$1,998 average seen in May 2021. Condo apartments now average $2,623 per month,
which marks a sizable 25% annual increase.
Apartments averaged $2,092 per month while single-family
home rentals jumped up 12% to a new average of $3,233.Two-bedroom units, in particular, saw the largest annual increase, with rents up 16% to a new average
of $2,584.
“Reduced supply coupled with increased demand from
immigration, more students, and recent graduates moving out of their parents
homes have contributed to the rapid rise in rents,” the report reads.
As for what lead to reduced supply, the report points to
increased demand from immigration, more students, and recent graduates moving
out of their parents’ homes. This, combined with high inflation, rising
interest rates, and more short-term rentals and supply chain issues, has led to
extremely tight conditions.
“Also, fewer people tend to move during uncertain economic
times, and more would-be first-time home buyers are deciding to stay on the
sidelines and in rental housing, drying up supply,” the report notes.
As to be expected, prices for Toronto condo rentals were the highest out of anywhere in the GTA, coming in at an average of $2,438 per month
— an annual increase of 19.8%. On a more granular level, the highest rental
rates out of anywhere in the GTA were seen in the Bay Street Corridor where
average rent prices are up 12% annually to $2,764. This is also 1% higher than
average rent prices in 2019, the year rents peaked.
Toronto was closely followed by Burlington and Etobicoke,
which had average rent prices of $2,233 and $2,263, respectively. Oakville
rents sat at $2,299 — up 11.2% year over year — followed by Mississauga with an
average rental price of $2,224 in May. Mississauga’s City Centre neighbourhood
has seen the highest growth, with condo and apartment rent prices up 28% to
$2,728, which is also 17% higher than in 2019.
Surprisingly, not every city in the GTA is seeing annual
rent increases. Prices in Vaughan are down year over year, and it’s the only
city to see such a trend. In May, the average rental price came to $2,072 which
is down 6.6% from May of last year. On a neighbourhood level, Cabbagetown-South
St. James Town is the only Toronto neighbourhood to have seen a drop in prices,
falling slightly from $1,865 in 2021 to $1,843 in 2022.
Recent Posts
Mediation vs Litigation in Ontario Rental Cases
April 19, 2024
Ways a Real Estate Lawyer Can Assist with Lease Agreements
April 19, 2024
When Should a Landlord Hire a Real Estate Lawyer in Ontario?
April 19, 2024