The average one-bedroom apartment in Toronto now costs over $2,470

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The price of rent in Toronto has gone up yet again, with one- and two-bedroom apartments in the city now costing nearly 30% more than they did a year ago.

According to the October 2022 National Rent Report from Rentals.ca and Bullpen Research & Consulting, the average rent for a one-bedroom hit $2,474 in September, a monthly increase of 6.3% and a 27.5% jump year-over-year.

The average rent for a two-bedroom in Toronto rose just 2.9% between August and September, to $3,361, but was up 27.7% on an annual basis.

Condominium rentals and apartments experienced even steeper price increases — the average rent for the units was up 31.2% year-over-year in September, to $2,855.

Condo rental rates in particular plunged during the pandemic, with prices falling below $2,053 in February 2021. They’ve since increased by more than 46%, to $2,988.

Toronto’s sky-high rents made it the second-most expensive city in Canada last month; on the list of 35, only Vancouver was pricier. Seven of the top 10 cities were in Ontario, though.

Across the province, the average rent for all property types was $2,451, an annual increase of 18.4%. Only BC ($2,682) and Nova Scotia ($2,453) were more expensive.

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Canada-wide, the average rent for all property types in September was $2,043, a monthly increase of 4.3% and a 15.4% jump from a year ago.

The figure is also a 21.9% increase from the market low seen in April 2021, and roughly $100 more than the pre-pandemic peak experienced in the fall of 2019.

“The 4.3% increase in average asking rent from August to September is the largest monthly increase since Rentals.ca and Bullpen Consulting began publishing this report in 2018,” said Ben Myers, president of Bullpen Research & Consulting.

“Part of the increase is attributable to larger units on the market, and high-end building completions adding expensive listings, but rental demand has increased significantly with the continued interest rate hikes, falling ownership house prices, and changing post-pandemic preferences.”

Despite the significant price increases, the report points to several signs that suggest the pressure on the rental market could soon ease.

First, the rental market is seasonal, and demand tends to fall between November and February.

As well, pageviews per listing on Rentals.ca have declined to roughly the average level seen between Q2 2022 and Q1 2022, before the Bank of Canada began raising interest rates. This is despite the site hosting its highest total number of listings since October 2018.

Rentals.ca and Bullpen Research & Consulting