Toronto condo and apartment rents rose 20% in June: report

Toronto’s hot rental market is feeling the heat as average condo and apartment rents rose 20% in June, pushing the average monthly price to $2,463.

And two-bedroom units hit $3,100 a month, topping pre-pandemic levels.

The average monthly rent in June for a one-bedroom apartment in Toronto rose 18.5% and 23.4% for a two-bedroom apartment year-over-year, according to a new report from Rentals. ca and Bullpen Research and Consulting.

Across Canada, the report found that the average rent for all property types on Rentals.ca was $1,885, a 9.5% year-over-year increase in June. This average is still 3.5% below the pre-pandemic level of June 2019 at $1,953.

“Despite data showing the share of employers returning to the office has stagnated after a year of steady increases, average rents in Canada’s largest cities continue to rise, with condominiums and rental apartments seeing rents jump 26% per year in Calgary, 25% per year in Vancouver and 20% per year in Toronto,” Ben Myers, president of Bullpen Research and Consulting, said in a statement.

Toronto was one of five cities that saw apartment and condo rents rise 20% or more in June year-over-year, translating to an average rent of $2,463 per year. months in Toronto.

This follows two years of year-over-year declines in Toronto – 9.2% in June 2021 and 7.8% in June 2020.

Month over month, the average rent in Toronto rose 2.8% for a one-bedroom apartment and 3.8% for a two-bedroom apartment.

One of the reasons for the increase in June stems from the lack of housing supply in Canada, according to the report.

The Canada Mortgage and Housing Corporation recently released a report suggesting that the country remains undersupplied with housing, which is putting pressure on the rental market and pushing residents to leave Ontario for more affordable provinces like Nova Scotia, which then drives up costs in the Atlantic province.

Rising interest rates, inflation, supply chain issues, record immigration levels and employer decisions regarding office work continue to affect the rental market across Canada, increasing demand and tightening supply, the report says.

The report also predicts rents will continue to rise, especially with an ongoing housing resale market correction – with sales plummeting as buyers and sellers wait on the sidelines due to rate hikes. from the Bank of Canada – further reducing supply and putting pressure on the rental market.