Toronto’s rental market continues to experience an astonishing surge in prices, with the average cost of renting a home in Canada’s economic hub reaching a staggering $2,822 in April.
According to the recent National Rent Report released by Rentals.ca and Urbanation, rental prices in the Toronto area skyrocketed by 41% compared to the pandemic low recorded two years ago. As a result, the average cost to lease a one-bedroom unit now stands at $2,526, while a two-bedroom unit demands a hefty $3,290 in the Greater Toronto Area.
In a year-over-year analysis, the average rental cost for a one-bedroom unit in the Toronto area has increased by 20.5% since April 2022, while a two-bedroom unit now commands an 18% higher rent compared to the previous year.
Toronto finds itself ranked second on the list of 35 Canadian cities in terms of rent prices, trailing only behind Vancouver for average one- and two-bedroom rental costs.
What is particularly noteworthy is that certain neighborhoods in Toronto surpassed even Vancouver in terms of rent growth. The GTA markets of Scarborough, Brampton, and Markham experienced a staggering surge of 30% in rental prices year-over-year. Specifically, Scarborough witnessed a rent increase of 31.9%, Brampton rose by 31.2%, and Markham surged by 30.3% in just the past year.
This upward trend is not limited to Toronto alone but is indicative of a nationwide surge in average monthly rents. Across Canada, the cost of rental units surged by 20% in April, surpassing the $2,000 mark since the pandemic low in 2021.
Shaun Hildebrand, president of Urbanation, points out that areas with high immigration levels are witnessing the most significant price growth. Hildebrand emphasizes the challenges faced by tenants who signed leases during the pandemic when prices were lower. These tenants may now face rent increases of 20% or more if they choose to move, exacerbating the already low supply situation.
The rental market in Toronto continues to be a cause for concern, as prices reach unprecedented levels, posing significant challenges for tenants and contributing to a widening affordability gap in the city.
Information for this story was found via Rentals.ca and Urbanation, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.