The average rent price for one- and two-bedroom apartments in the Toronto area has reached a record level after market conditions “tightened dramatically” over the past year, the Toronto Regional Real Estate Board (TRREB) says.
In a statement issued Thursday, TRREB said the prices have now surpassed the previous peak seen in the third quarter of 2019.
There were 13,203 condo apartment rental transactions through the TRREB MLS system in the second quarter of this year, which marks an 11.4 per cent drop compared with the previous year.
But TRREB said the drop in transactions “was not the result of waning demand” and was instead due to a drop in the number of rental listings (down by 30 per cent year over year).
“With less choice, it was much more difficult for renters to get deals done,” the statement said.
The average rent price for one-bedroom units increased by 20.2 per cent year over year in the second quarter to $2,269, while the average for two-bedroom units jumped by 15.3 per cent to $2,979.
TRREB noted that average apartment rents for all bedroom types were up by double digits in the second quarter.
And TRREB president Kevin Crigger said prices will likely continue to rise.
“Expect rental market conditions to tighten further in the coming months,” Crigger said.
“Higher borrowing costs may have temporarily precluded home buying for some households, but the Greater Toronto Area population continues to grow alongside a booming regional economy. This means that an increasing number of people requiring a place to live will turn to the rental market.”
TRREB chief market analyst Jason Mercer said more needs to be done to address the rising prices.
“Policymakers need to develop a diversity of options to bring more rental supply online, whether we’re talking about investor-held condominium apartments or purpose-built rental developments,” Mercer said.