The average monthly rent in the GTA has declined for the tenth straight month in a row, is down 13%, and is now just over $2,000.
According to the latest TorontoRentals.com and Bullpen Research & Consulting Toronto and GTA rent report, the average monthly rent was down to $2,131 in September, and had dropped almost 13% year over year .
One-bedroom apartments are down 11% and two-bedrooms are down nine percent.
While the pandemic has affected rent prices, the decrease is also due to owners of recently completed high-end apartments offering significant discounts on rent, or incentives such as two months free, the report said.
The average monthly rent for condo apartments in the GTA in September sat at $2,199, about $370 – or 14.5% – less than in September 2019 when landlords were asking $2,571 per month. Rental apartments have declined from $2,124 per month to $2,016 per month in the same time frame, a dip of just over five percent.
The average monthly cost for rental condos in old Toronto (pre-amalgamation boundaries) in September declined 16.9% to $2,222 year over year. Rental apartments have seen average rent drop by 6.8% annually to $2,082.
“Centrally-located condo rentals in Toronto continue to see significant rent decreases, especially the smallest suites, as tenants look for cheaper units with more space to accommodate their work-from-home needs,” said Matt Danison, CEO of Rentals.ca
“Newly completed buildings coupled with a lack of demand has resulted in condo apartment projects built since 2000 seeing an average increase in listings of 80% annually on TorontoRentals.com.”
Data from the report shows rents dropping for smaller units in old Toronto as more people work from home and some urban residents move to outlying areas in search of larger homes.
Old Toronto has seen average prices for condo and rental apartments decline by eight percent annually for 500-sq-ft unites, while 800-square-foot units are down by five percent.
In contrast, 1,000-sq-ft units are up one percent year over year.
“Many younger tenants in the GTA are leaving the region, even if it is only temporarily, to take advantage of much less expensive rent levels in other cities in Ontario,” said Ben Myers, president of Bullpen Research & Consulting.
“The average rental rate for a 1,000-sq-ft condo in Kitchener is up 34% annually, but is still cheaper than a 500-sq-ft unit in Mississauga, Etobicoke, North York, or Toronto.”
The average level of rental apartments under construction in 2020 is higher than any time over the last 30 years, and condominium apartment units under construction in the metro area increased by five percent year over year in September.
“Many of these apartments will be completed in 2021 and 2022, and will continue to add to the supply, which could keep rents lower if a vaccine is not approved during that time,” according to the report.