Rent prices across Toronto have been on the rise for months, and they’re making residents reconsider living in the city.
During the third quarter of the year, Toronto rent prices jumped up to $2,181, according to a new report from Rentals.ca and Bullpen Research & Consulting. This marks a 6.7% change from the $2,044 average during the second quarter. Toronto’s prices are the second most expensive in the country, beating out only Vancouver’s $2,625 average.
Toronto prices bottomed out in March of this year and have been slowly recovering ever since. Although rental rates are still down annually — 3.2% for studios, 2.9% for one-bedrooms, and 1% for two-bedrooms — the steady increases and stiff competition are causing some to rethink city living.
“Many residents of Toronto have considered moving out of the city due to the high rent levels,” the report reads. “If a tenant decided to move to Windsor, a unit in the 500-square-foot range would be $500 cheaper than Toronto, while a unit in the 800-square-foot range would be $900 cheaper, and a unit in the 1,000-square-foot range would be $1,300 cheaper.”
A one-bedroom in Toronto will now, on average, run a renter $1,938 per month, while a two-bedroom will cost $2,628.
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Moving just beyond the city won’t find you much cheaper rents either. Etobicoke, Mississauga, North York, and Scarborough all immediately followed Toronto as the third through sixth most expensive municipalities in the country. All experienced rent price increases this past quarter — something that was seen all across Canada.
“September marked the first time this year that the average rent in Canada wasn’t cheaper than last year, as rental rates continue their upward trend,” said Ben Myers, president of Bullpen Research & Consulting. “Canada’s 10 largest municipalities all experienced quarterly rent growth, showing the recovery is not regional but nationwide. With employment returning to pre-pandemic levels and immigration picking up, expect rental rates to continue to slowly climb over the next 18 months.”