Toronto's rental market has experienced an astonishing surge, with average rent prices skyrocketing by over 40% since 2021.
The latest National Rent Report by Rentals.ca reveals the staggering increase in rental costs, shedding light on the current state of Toronto's housing market.
Renting a home in Toronto now comes with a hefty price tag, with an average monthly rent of $2,822. Specifically, one-bedroom units now command around an average of $2,526 per month, while two-bedroom apartments demand a substantial average of $3,290.
Less than a month ago, the average rent for purpose-built apartments in Toronto skyrocketed to $3,002 — a record-breaking feat that was never been seen before in the area.
This surge in rent prices reflects notable year-over-year growth. Renters in Toronto are facing a 20.5% increase in average monthly rent for one-bedroom units compared to the same period last year.
Similarly, two-bedroom units have experienced an 18% surge in rental costs within the same timeframe.
Toronto still remains only the second most expensive rental city in Canada, trailing behind Vancouver.
However, certain areas within the Greater Toronto Area have seen even higher rent growth rates than Vancouver itself. Scarborough, Brampton, and Markham have experienced remarkable increases of 31.9%, 31.2%, and 30.3%, respectively, over the past year.
Various factors contribute to this surge in rent prices. Record levels of immigration, inflation, and high-interest rates for first-time homebuyers are some of the reasons cited by Matt Danison, the CEO of Rentals.ca Network, in a release sharing the findings.
This trend is not limited to Toronto alone but is part of a nationwide pattern. Rental costs across the country have surged by 20% since the pandemic low in 2021, pushing the average monthly rent to over $2,000.
Neighbourhoods with high levels of immigration are also experiencing the most substantial price growth, Shaun Hildebrand, the president of Urbanation, pointed out.
"Tenants that signed leases during the pandemic may be facing rent increases of 20% or more if they decide to move, causing reduced turnover that is exacerbating the low supply situation," he added.