Toronto’s monthly rent has soared 11% in the past year.
According to the latest rental market report by Urbanation, the average monthly rents in Toronto grew to $2,206, which is up by $214 since 2017.
Over the past two years, Urbanation reports an average rent increase of $314. Along with the price increase, renters in the city have started to gravitate towards less expensive options in the rental market, so more studios and one bedrooms are being rented which averaged $1,640 and $1,907, respectively.
The report states that a total of 5,302 condominium apartments were leased through the MLS system in the Greater Toronto Area in Q1-2018, which is the lowest Q1 level since 2015. The total number of units listed for rent during the quarter also declined 12% year-over-year.
Rents rise 11% as income required to qualify for average priced condo reaches $100,000 – per our latest rental report for Q1-2018: https://t.co/QanejsFBbM
— Urbanation (@Urbanation) April 11, 2018
While rent is increasingly expensive, Urbanation calculated that it is still less expensive to rent than own when it comes to an equivalent sized condo. “As of two years ago, the costs of renting and owning were virtually equal,” states the report.
“Renters in the GTA are facing very strong market forces that are pushing hard on demand while new supply remains stubbornly low,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
Hilderbrand said that the situation should improve “at least somewhat” starting in the second half of the year as more condo projects under construction reach completion.