Average Rent In The GTA Just Saw The Biggest Price Jump In Years & It Could Keep Going Up

If you've been trying to get out of your parents' house and find your own place to rent in the GTA, you might have noticed that it's pretty expensive.

In a recent rental report from Bullpen Research & Consulting Inc. and TorontoRentals.com, the average costs of rent in the GTA last month went up by 16.5%, going from $1,998 to $2,327 from May 2021 to May 2022. Ouch.

It's the biggest price jump that rental prices have seen in the last few years with prices spiking by 5.7% on average. Even though the rental rates have gone up last month, they're still less than what it was back in 2020 (though, just by around $45).

But, how does this play out in each city across the GTA?

Well, Toronto has the highest rent, of course, with an average cost of $2,438 per month. The price actually jumped by almost 20% from what it was last year.

Etobicoke and Burlington come in at second and third for most expensive spots to rent in the area, with average prices going for $2,263 and $2,233 a month, respectively.

Vaughan was the only city in the GTA that actually saw rent prices go down, with costs dipping by 6.6% and going to $2,072 per month on average.

The report also broke down how much rent costs in popular neighbourhoods across the GTA, and the Bay Street Corridor had the most expensive prices at $2,764 a month while South Parkdale boasted the cheapest rent at $1,767 per month.

"The most desirable neighbourhoods pre-pandemic (most centrally located) are experiencing the highest growth in 2022 at 15% to 20% annually, whereas the less desirable or 'outer-416' communities are seeing modest annual rent inflation at 5% to 10%," the report reads.

Why is it getting more expensive?

Part of the reason why rent has gone up so much this month is due to the rising interest rates for homes, which has impacted the number of rental listings in the GTA since people are staying in their rented units until housing prices go down more, according to the report.

"This reduced supply coupled with increased demand via immigration, more students, and recent graduates moving out of their parents homes have contributed to the rapid rise in rental rates," the report reads.

"However, it should be noted that the higher rates could push the country into a recession, and flattening out of resale prices could entice some of those prospective buyers to try to time the bottom of the housing market and leave the rental market."

Here's how much rent costs across the GTA in May 2022:

• Toronto, $2,438/month (up by 19.8% from last year)
• Etobicoke, $2,263/month (up by 17% from last year)
• Burlington, $2,233/month (up 18.3% from last year)
• Oakville, $2,299/month (up 11.2% from last year)
• Missisauga, $2,224/month (up 12.9% from last year)
• North York, $2,102/month (up 10.2% from last year)
• York, $2,083/month (up 12.2% from last year)
• Vaughan, $2,072/month (down 6.6% from last year)
• Brampton, $1,950/month (up 4.4% from last year)
• East York, $1,898/month (up 8% from last year)
• Scarborough, $1,850/month (up 2.5% from last year)
• Oshawa, $1,807/month (up 12.4% from last year)