Condo rentals have been hit hardest.
While Toronto's real estate market is notoriously expensive, trying to find a spot to rent is no cheap feat either.
On July 28, the Toronto Regional Real Estate Board (TRREB) published its rental market summary for the second quarter of this year, and it's not looking good for prospective renters.
According to the summary, condo rental market conditions "have tightened dramatically over the last year" and rent, for both one and two-bedroom apartments, has broken records. The average rents for these kinds of units have now blown past their previous peak in 2019.
Condos saw their rent spike by double digits this past quarter, according to the TRREB, with one-bedroom costs soaring by over 20% to a tearjerking average of $2,269. Meanwhile, two-bedroom units went up by over 15% to an average of $2,979. Ouch.
The number of people signing up for a condo to rent in Toronto and the GTA has also dipped down, which the TRREB says is not due to a "waning demand" but because fewer listings are available for prospective renters.
"Expect rental market conditions to tighten further in the coming months," TRREB President, Kevin Crigger, said in a news release.
Trying to find a spot to rent in the 6ix could get more challenging due to the fact that borrowing costs are pricier now thanks to the Bank of Canada's increased interest rates.
"Higher borrowing costs may have temporarily precluded home buying for some households, but the Greater Toronto Area (GTA) 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," Crigger said.
So, if you see your dream condo or apartment up for rent, you might want to act fast.
"Competition between renters continues to heat up, resulting in extremely strong upward pressures on average rents. Rental supply remains a major issue in the GTA and will become more pronounced in the short term, as an increasing share of well-employed individuals turn to the rental market," TRREB Chief Market Analyst, Jason Mercer, said in the market report.
This article's cover image was used for illustrative purposes only.