Analysts: Toronto rents up 20 percent since mid-2021

Rental prices in Toronto are up 20 percent over the past year and are now close to where they were before the COVID-19 pandemic.

A new report from Bullpen Research & Consulting and TorontoRentals.com found that the median rent price in the city in May was $2,474, up from $2,035 this time last year.

It’s the first annual increase in rental prices since the start of the pandemic.

Previously, rental rates fell by 11 per cent per year in May 2021 and six per cent per year in May 2020 as many people left the city in search of more space.

But last May saw the biggest monthly increase in rental prices since 2019, driving up prices in most markets across the country.

Across the GTA as a whole, rental rates are up 17 percent over the past year to $2,327 a month. However, this is still marginally lower than the average price in May 2019 ($2,365).

Meanwhile, supply has also fallen across the board. Data shows that listings on TorontoRentals.com have fallen 22 percent since November, including 10 percent since the peak of the resale home market in February.

In their quest to fight inflation, central banks around the world are increasing interest rates, and as a result, in the GTA, home resale prices are dropping. In the short term, the report notes, this discourages some potential buyers from exiting the rental market, reducing the supply of rents. “This drop in supply combined with increased demand through immigration and more students and recent graduates leaving their parents’ homes has contributed to the rapid rise in rental rates.”

It’s the first annual increase in rental prices since the start of the pandemic.

Previously, rental rates fell by 11 per cent per year in May 2021 and six per cent per year in May 2020 as many people left the city in search of more space.

But last May saw the biggest monthly increase in rental prices since 2019, driving up prices in most markets across the country.

In the GTA as a whole, rental rates are up 17 percent over the past year to $2,327 per month. However, this is still marginally lower than the average price in May 2019 ($2,365).

Meanwhile, supply has also fallen across the board. Data shows that listings on TorontoRentals.com have fallen 22 percent since November, including 10 percent since the peak of the resale home market in February.

In their quest to fight inflation, central banks around the world are increasing interest rates, and as a result, in the GTA, home resale prices are dropping. In the short term, the report notes, this discourages some potential buyers from exiting the rental market, reducing the supply of rents. “This drop in supply combined with increased demand through immigration and more students and recent graduates leaving their parents’ homes has contributed to the rapid rise in rental rates.”

Data shows that a one-bedroom unit in Toronto is now listed for an average of $2,133 per month. This equates to a 3.3 percent increase from last month and a 15.7 percent increase from last year.

But competition for larger two-bedroom units is fiercer, sending the average listing price up more than five percent over the past month and 21.5 percent year-over-year to $3,002.

The report’s authors also cited anecdotal evidence that “bid wars, unseen home renters” are becoming more and more common in the market.

Speaking to reporters in Queens Park, Premier Doug Ford said the answer to the rising cost of rent lies in “encouraging more developers to build more rental units.” But he acknowledged that it was a difficult task in an inflationary environment that had led to the high cost of borrowing and building.

“We’re going to have a very bold plan going forward but we can’t do it alone. So we have to work with the federal government and the city and I’m confident that if we can standardize the process, speed up the process, and provide some land – whether it’s municipal, provincial or federal – we can move forward. , ” He said. But make no mistake about it, there are challenges. Interest rates are going up, inflation is going up, so that will be a challenge.”

These are the 10 most expensive rental markets in Canada according to the report:

  1. Vancouver – $3.74 per square foot

  2. Toronto – $3.46 per square foot

  3. York Region – $2.85 per square foot

  4. Mississauga – $2.53 per square foot

  5. Ottawa – $2.53 per square foot

  6. Montreal – $2.47 per square foot

  7. Hamilton – $2.29 per square foot

  8. Kitchener – $2.25 per square foot

  9. Calgary – $2.07 per square foot

  10. Brampton – $1.90 per square foot

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