A new real estate report shows that housing prices in the GTA have skyrocketed and are back to pre-pandemic rates.
Recent data from Bullpen Research & Consulting and TorontoRentals.com shows that the average combined cost of rental units and condos in downtown Toronto is $2,325 per month, a year-over-year increase of 15.9 percent.
The price is much higher when square footage is taken into account, with Toronto having so far seen the most dramatic rise in rental prices in the GTA.
How much is the rent in Toronto?
Rental prices have gone up in Toronto, more than any other city in the GTA. Here’s what it looks like now.
$2,065 one bed
Average monthly rent for a one-bedroom unit in Toronto.
$2,849 two beds
Average monthly rent for a two-bedroom unit in Toronto.
$3,347 three beds
Average monthly rent for a three-bedroom unit in Toronto.
Average monthly rent for all unit arrangements in Toronto.
A 1,000-square-foot unit in Toronto rents, on average, more than $3,000 a month — a similar unit in Scarborough rents, on average, just over $2,000 a month, according to the data.
Real estate expert Ben Myers, Bullpen’s president and owner, says rental costs will only get worse as the larger housing market continues to cool.
“Lots of people are returning to work, tourism is boosting… Many groups of graduates will also be moving to downtown Toronto, who may start full-time jobs online and are now ready to move into the office. They have stayed in their college dorms or With mom and dad, they’re ready to move in.”
“The pandemic has caused rents to drop by 20 percent, so we are now going back to the rental rates that prevailed in the pre-pandemic period.”
Below are the average rental rates for all municipalities of the GTA
This is the cheapest or most expensive place in the Greater Toronto Area.
15.9 percent rate increase over last year.
1.9% rate increase over last year
15.0 percent rate increase compared to last year.
$2,129 Richmond Hill
26.0% rate increase compared to last year
8.5% rate increase compared to last year
$2,012 North York
5.0% rate increase compared to last year.
988 USD York
7.1% rate increase compared to last year.
$1,870 East York
6.4% rate increase compared to last year.
0.6% rate decrease compared to last year
1805 US dollars Scarborough
0.5% rate increase compared to last year.
1795 USD Markham
A decrease of 5.2 percent compared to last year.
Richmond Hill in particular has seen a massive increase in rental rates – 26 percent since April 2021. But according to Myers, that number may be an anomaly given how the data is collected from Rentals.ca and its brother, TorontoRentals.com.
“It’s a small sample size. This might be more related to making up listings on these sites…it might be one month where all studios are for rent, followed by three-bedroom penthouses for rent,” Myers said, but for now, yes, Richmond Hill appears to be It is the ‘right place’.
Burlington appears to be another hot spot in the GTA, which since 2021 has seen a 17 percent increase in rental prices, according to the report.
Myers says the inflated price of single-family homes could be part of the reason why the rental market has heated up so much.
“After several consecutive months of monthly increases last year, the average rent in the GTA has been flattened, but higher interest rates could have tip the scales, push potential buyers into the rental market, or simply prevent[ing] Myers says.
It also appears that interest in two-bedroom units has increased, at least in part due to the growing need for home office space as the pandemic has caused a shift to working from home. Two-bedroom rentals have risen at least 10 percent each month since January, according to the data.
“If the property market continues to decline, expect rents to rise,” Myers says.
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