The report indicates that the average rent for smaller units in the city is down almost 23% year over year and it's believed that prices will drop even more from here.
The March 1 report says that the average cost of these units is now $1,691. With prolonged closures and the shift to remote work, downsized living for the sake of proximity to the city is no longer as desirable.
"The smallest units in the market, ranging from 400 square feet to 600 square feet have really seen rents decline during the pandemic," said President of Bullpen Research & Consulting Ben Myers in the report.
"With the second COVID lockdown still underway, a return to downtown offices is still likely a ways off, and the downward trend is expected to continue."
This shift has led to properties going on the market for much less than pre-pandemic prices.
You can find downtown bachelors with upgraded features for less than $1,300 a month, and some even come with pool and sauna access. Studio condos in Toronto's luxury hotels are also selling for as little as $370,000.
This trend could also be a result of Torontonians leaving town in droves this past year, leading to a record decline in the city's population.
Smaller units in surrounding cities are seeing a similar trend, although the decline is not as steep. The average rent is down 17% in North York, 14% in Richmond Hill and 11% in Mississauga.
Behind Toronto, Etobicoke has seen the second largest drop in average monthly costs for apartments and condo rentals, falling 18%.*
Is it possible that London, Ontario's pleas to get Torontonians to move there for a better life are actually working?
*This article has been updated.