Average rent prices in Toronto fell steadily during the pandemic, but it’s starting to make a comeback, rising for two months in a row.
A new report from Torontorentals.com and Bullpen Research & Consulting found that in the month of May, the average rent price in Toronto hit $1,999. That’s an increase of $22 from April’s $1,977 average.
May prices per square foot are up 2.2% since January, the report says, and they’ll likely keep going up.
“The rental market in the GTA has turned a corner and is trending back up again; bad news for tenants, and good news for landlords,” said Ben Myers, president of Bullpen Research & Consulting.
“With Toronto entering the next stage of COVID-19 reopening, tenants will be reminded of the benefits of a centrally located apartment or condominium rental, as patios fill up and boutique retail shops open. We expect an increase in leasing activity as tenants look to take advantage of the current incentives at many buildings before they disappear.”
Demand has remained highest among larger units, according to the report, likely due to people working and continuing schooling from home.
Townhomes saw the largest increase month-over-month, with rental prices rising 5.3% from April to May, bringing the average up to $2,793.
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Prices are still down significantly on an annual basis, with studio and one-bedroom prices still sitting at 14% and 13%, respectively, of where they were at the same time last year. Bullpen Research & Consulting is predicting that rent will grow 12-14% next year as the borders open, tourism increases, and students return to in-person school.