It has literally never been so expensive to rent an apartment in the Greater Toronto Area

It has literally never been more expensive to rent a condo in the Greater Toronto Area.

According to the latest report from the Toronto Regional Real Estate Board Rental market reportthe average rent for a one-bedroom condo in the GTA hit $2,269 in Q2 2022. This figure not only represents a 20.2% year-over-year increase, but tops the previous high seen in Q3 2019.

Rent for a two-bedroom condo in the area also hit a record high in the second quarter, jumping 15.3% year-over-year to $2,979.

Studios and three-bedroom condos also posted double-digit annual growth in the second quarter – prices rose 21.1% and 12.8%, respectively. The average single in the GTA now costs $1,829, while a three-bedroom is $3,790.

The average rent for bachelor and one-bedroom apartments in the city of Toronto is comparable to the regional prices mentioned above. However, a two-bedroom unit costs $82 more per month, while a three-bedroom unit costs $142 more.

“Expect rental market conditions to tighten further in the coming months. Higher borrowing costs may have temporarily prevented home buying for some households, but the population of the Greater Toronto Area continues to grow alongside a booming regional economy,” said the President. from the TRREB, Kevin Crigger.

“This means that an increasing number of people in need of accommodation will turn to the rental market.”

A total of 13,203 condos were rented through the TRREB MLS® system in Q2 2022 – including more than 10,500 in the City of Toronto – a decline of 11.4% from Q2 2021.

Rather than lowering demand, the council says the drop in rentals was due to a ‘much more pronounced’ drop in listings; they fell nearly 30% year-on-year.

“Competition between tenants continues to intensify, resulting in extremely strong upward pressure on average rents. Rental supply remains a major issue in the GTA and will become more pronounced in the near term as an increasing share of well-employed people turn to the rental market,” said TRREB Chief Market Analyst Jason Mercer.

“Policymakers need to develop a diversity of options to bring more rental supply online, whether it’s investor-owned condominiums or purpose-built rental developments.”

Source link