Toronto rent prices rose 20 per cent over the last year
Toronto rent prices have risen by 20 per cent over the last year and are now approaching where they were prior to the onset of the COVID-19 pandemic.
A new report by Bullpen Research & Consulting and TorontoRentals.com has found that the average rent price in the city in May was $2,474, up from $2,035 at this time last year.
It marks the first year-over-year increase in rent prices since the start of the pandemic.
Previously, rent prices declined by 11 per cent annually in May 2021 and six per cent annually in May 2020 as many people left the city in search of more space.
But this past May saw the biggest monthly increase in rent prices since 2019, pushing up prices in most markets across the country.
Across the GTA as a whole, rent prices were up 17 per cent over the last year to $2,327 per month. That, however, is still marginally below the average price in May 2019 ($2,365).
Meanwhile, supply was also down across the board. The data suggests that listings on TorontoRentals.com have fallen 22 per cent since November, including 10 per cent since the peak of the resale housing market was reached in February.
“In a quest to fight off inflation, central banks across the world are increasing interest rates, and as a consequence, in the GTA, resale house prices are softening. In the short-term that is dissuading some would-be buyers from exiting the rental market, reducing rental supply,” the report notes. “This reduced supply coupled with increased demand via immigration, more students, and recent graduates moving out of their parents homes have contributed to the rapid rise in rental rates.”
It marks the first year-over-year increase in rent prices since the start of the pandemic.
Previously, rent prices declined by 11 per cent annually in May 2021 and six per cent annually in May 2020 as many people left the city in search of more space.
But this past May saw the biggest monthly increase in rent prices since 2019, pushing up prices in most markets across the country.
In the GTA as a whole, rent prices were up 17 per cent over the last year to $2,327 per month. That, however, is still marginally below the average price in May 2019 ($2,365).
Meanwhile, supply was also down across the board. The data suggests that listings on TorontoRentals.com have fallen 22 per cent since November, including 10 per cent since the peak of the resale housing market was reached in February.
“In a quest to fight off inflation, central banks across the world are increasing interest rates, and as a consequence, in the GTA, resale house prices are softening. In the short-term that is dissuading some would-be buyers from exiting the rental market, reducing rental supply,” the report notes. “This reduced supply coupled with increased demand via immigration, more students, and recent graduates moving out of their parents homes have contributed to the rapid rise in rental rates.”
The data suggests that a one-bedroom unit in Toronto is now listed for $2,133 per month on average. That equates to a 3.3 per cent increase over the last month and a 15.7 per cent increase over the last year.
- Have you recently bought a house? We want to hear from you
But the competition for larger two-bedroom units is more fierce, pushing the average listing price up more than five per cent over the last month and 21.5 per cent year-over-year to $3,002.=
The authors of the report also cited anecdotal evidence suggesting that “bidding wars, and tenants renting homes sight unseen” are becoming more common in the marketplace.
Speaking with reporters at Queen’s Park, Premier Doug Ford said that the answer to the rising cost of rent lies in “encouraging more developers to build more rental units.” But he acknowledged that it is a tough task in an inflationary environment that has pushed up the cost of borrowing and building.
“We are going to have a very, very aggressive plan going forward but we can’t do it alone. So we have to work with the federal government and the city and I am confident that if we can standardize the process, speed up the process, supply some of the land – be it municipally or provincial and federal – we can move forward,” he said. “But make no mistake about it, there are challenges. The interest rates are going up, inflation is going up so it is going to be a challenge.”
- Vancouver - $3.74 per square foot
- Toronto - $3.46 per square foot
- York Region - $2.85 per square foot
- Mississauga - $2.53 per square foot
- Ottawa - $2.53 per square foot
- Montreal - $2.47 per square foot
- Hamilton - $2.29 per square foot
- Kitchener - $2.25 per square foot
- Calgary - $2.07 per square foot
- Brampton - $1.90 per square foot
CTVNews.ca Top Stories
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
MPs agree Canadian gov't should improve new disability benefit
The federal government needs to safeguard the incoming Canada Disability Benefit from clawbacks and do more to ensure it actually meets the stated aim of lifting people living with disabilities out of poverty, MPs from all parties agree.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL has suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
opinion Tom Mulcair: Trudeau's handling of Poilievre's 'wacko' House turfing a clear sign of Liberal desperation
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca
New charges for Ont. woman who previously admitted to defrauding doulas
The Brantford, Ont. woman who was previously sentenced to house arrest after admitting to deceiving doulas has been charged again in connection to a new victim.