It costs $525 more to rent a condo or apartment in Toronto than it did a year ago
It’s getting more and more expensive to put a roof over your head in Toronto, and anyone signing a lease to rent a unit in the city or surrounding area this summer will have to shell out slightly more than the going rates a year earlier. .
The Greater Toronto Area’s average monthly rental prices experienced a shocking spike in July 2022, rising 19.3% year-over-year to $2,482, according to the City’s latest rent report. GTA from Bullpen Research & Consulting and TorontoRentals.com.
That puts average rents back above pre-pandemic levels, and experts see no signs of price cooling any time soon.
Average monthly rent across all unit types was a relatively cheap $2,080 in July 2021, which means prices in the area are up over $400. Consider the runaway inflation plaguing much of the world, and that $400 in 2021 is actually worth $430.36 in 2021 dollars.
In Toronto proper, it now costs an average of $2,667 per month to rent a home, the highest price in the region, and an alarming 25% increase from July 2021. That’s about $525.
“The Greater Toronto Area continues to experience unprecedented rent growth, with monthly increases exceeding 3% in May, June and July,” said Ben Myers, president of Bullpen Research & Consulting.
“The July average GTA rent of $2,482 per month has now surpassed the previous market record set in November 2019 of $2,460.”
Strong demand and competition in downtown Toronto has resulted in dramatic price increases in some pockets.
The M5V zip code in Toronto’s Entertainment District and King West neighborhoods saw an incredible annual rent increase of 43% to a Manhattanesque $3,203 per month in July.
On a month-to-month basis, GTA-wide rents rose 3.3% in July. That doesn’t appear to be a massive increase on the surface compared to the year-over-year numbers, but it follows a 3.1% increase in June and a 5.7% increase in May.
The rent report highlights the abnormality of these increases, indicating that most major cities do not even experience rental price growth of 3% in a full year.
Myers expects “outsized rent increases over the next few months,” attributing price growth projections to “further interest rate hikes ahead, uncertainty in the property market and high demand from the upcoming fall rental season”.