The price of living in the 6ix is a headache, especially when the average Toronto apartment rent hits an all-time high. According to Urbannation, a Toronto-based market analysis firm, residents are now paying an average of a whopping $2,515 per month to live in a rental apartment in the city. Also, if you think that includes unities and parking, think again, that’s just the price of the rent.
The firm reported that rent across the GTA had gone up by 30 percent in the last three years, and those who are trying to rent apartments in the downtown core are definitely feeling the financial strain.
Thankfully, according to The Toronto Star, the shocking increase might have caused it to hit the ceiling. In its Q3-2019 rental market findings, Urbannation reported that rents are only up 6.1 percent, year by year, from $2,370 during the third quarter of 2018, which believe it or not represents the slowest rate of rent growth in two years.
"The results indicate that rent inflation has begun to moderate after a strong escalation in recent years that brought rents up by about 30 percent compared to three years ago, suggesting that $2,500 per month may represent a near-term resistance level for GTA rental affordability," reads the report.
"As well, the 3,157 purpose-built rental units that completed construction in year-to-date 2019 was the highest level of new rental supplied delivered in 25 years, which has coincided with a rise in condominium apartment completions — many of which are used as rentals."
So, what is causing this much-needed cap-off? Well, despite vacancy rates remaining super low at just 0.8 percent. A variety of choices for renters is helping to reduce some of the tension in Toronto’s apartment market.
Back in September, a tiny Scarborough house, made headlines after it was listed at $399,900. The average price of a home in the GTA was set at $757,365 back in 2018.
It’s also worth noting that this particular Urbanation survey only collected market information from purpose-built rental apartment projects completed in the GTA since 2005. However, that being said, its results still offer a better picture of the rental market is at and where it could be heading.
Also, the fact that nobody can afford to live thanks to Toronto’s soaring rent rates has also come into play.
"The latest data suggest affordability constraints are impacting market growth for rentals," explained Urbanation President Shaun Hildebrand, "with renters seeking to save on costs by forming more multi-tenant households and substituting to smaller units and less expensive areas of the GTA."