The GTA just keeps getting more expensive for renters.
Average monthly rents in the GTA went up 21% — or $430 — for all property types during the year ending in August. Monthly rent increased to $2,528 in August from $2,098 a year earlier, according to the latest rent report by Rentals.ca and Bullpen Research & Consulting.
Rental rates have appreciated by 28.2% above COVID-related lows of 2021, said the report, which attributed the hike to the Bank of Canada’s decision to raise interest rates.
Rising interest rates have made owning a home more expensive, leaving renting a more viable option.
“From May to August, the Greater Toronto Area rental market has experienced four significant monthly rent increases, as tenant demand has skyrocketed due to interest rate changes, a resale house price correction, and the typical seasonal fall uptick,” said Ben Myers, president of Bullpen Research & Consulting.
“Pageviews per listing on TorontoRentals.com hit a multi-year high in August, rising 106% annually and 166% from the pandemic-impacted August 2020. Prospective tenants are seeing limited vacancies due to an extreme imbalance between supply and demand, with year-to-date new housing completions down 22% annually in the metro area per CMHC.”
In Toronto, the average rent for apartments rose by 30.7% — or by $600 — to $2,533 in the third quarter from a low of $1,938 in the first quarter of 2021.
Average rents for the third quarter were up 13% over the second quarter.
Comparisons of the third and second quarter show monthly rents went up 10.1% in North York, 9.4% in Scarborough, 5.7% in Etobicoke, and 5.1% in Mississauga.
In August, Toronto’s average rent for condominium apartments was $2,963, a 43% increase over the lowest COVID-19 dip in 2021 that saw tenants finding units for below $2,100.