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Average rental prices in Toronto rise year-over-year after dropping in 2021

Average rental prices in Toronto rise year-over-year after dropping in 2021 - image
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Toronto was the second most expensive city in Canada to rent in February on a list of 35 cities, with the average monthly cost for a one-bedroom costing $2,044, and the average two-bedroom costing $2,778.

That’s according to the new National Rent Report, published by Rentals.ca and Bullpen Research and Consulting, which looked at monthly, quarterly and annual rates and trends in the rental market.

According to the report, data gathered on a national, provincial and municipal level was analyzed across all listings on Rentals.ca for Canada.

Read more: Average rents up 3% across Canada in 2021, CMHC says

In a press release, the authors of the report said the national monthly rent in February was $1,820 per month, marking an increase of 6.2 per cent annually.

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The release said rents could “continue to push higher in the near future because of increasing demand reinforced by supply chain disruptions, record inflation, increasing interest rates and much higher gas prices.”

Ben Myers, president of Bullpen Research and Consulting said the rental market in Canada “continues to trend upward in the post-vaccine pandemic period, with continued strength in the market for larger suites.”

“Growth in average rents for one-bedroom units lags other bedroom types, with two-, three- and four-bedroom units exceeding February 2020 pre-COVID-19 rent levels last month,” he said in a statement.

“British Columbia, specifically Vancouver, and downtown Toronto are leading the market recovery, pushing rents up nationally.”

Toronto rental prices

According to the report, year-over-year the average monthly rent in February for a one-bedroom in Toronto increased by 12.7 per cent, and even further by 15.1 per cent for a two-bedroom.

However, researchers found that month-over-month, the average price for a one bedroom was up 0.4 per cent for a one-bedroom, but dropped 0.7 per cent for a two-bedroom.

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The report found that Toronto had the second-highest annual change in average monthly rents for condo and apartment rentals.

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The city’s rent rose by 16 per cent year-over-year, reaching $2,312.

“This was a big turnaround through the pandemic, as the city’s annual average rent had declined 20 per cent in February 2021 to $1,994,” the press release reads.

Ontario rental prices

According to the report, Ontario had the second-highest monthly average rental rates out of seven provinces, after British Columbia.

The survey included data from Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Newfoundland and Labrador.

The report said Ontario’s monthly average rental rate was at $2,118, which marked at 10.4 per cent increase year-over-year in February.

The average cost to rent a one-bedroom and two bedroom condos in Ontario rose by 18 per cent in February.

The report also included numbers from other cities in the Greater Toronto area.

The report found that Etobicoke was fourth on the list for average monthly rents for condos and apartments last month, with a 12 per cent increase in average monthly rent to $2,15.

Read more: First shared equity program to help Black families break into housing market launches in Canada

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This comes after being down 15 per cent in February of 2021 with an average cost of renting sitting at $1,929.

Researchers said that rent in Mississauga was up six per cent and Scarborough was up two per cent.

North York was down one per cent after dropping 12 per cent in February of 2021.

In Hamilton, the report found that average monthly rentals for apartments and condos dropped four per cent in February to $1,722 after being up by 15 per cent in February of 2021 costing on average $1,799.

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