Toronto’s rentals are trending downward, according to the latest PadMapper report.
While Toronto takes the number one spot for the most expensive markets, rent has continued to be down “on all fronts.”
Toronto isn’t the only Canadian city that has had negative monthly rent price changes.
According to PadMapper – an apartment-hunting website – 80% of Canadian cities have had flat or negative monthly rent price changes.
“As many renters nationwide suffered financial setbacks from the pandemic, rents throughout Canada have been faced with downward pressure post-COVID,” PadMapper said in its report.
“Landlords will need to price down units and/or offer incentives, like a free month’s rent with a 12-month lease, in order to fill vacancies.”
As of June 13, in Toronto, one-bedroom apartment rent has decreased by 4.55% from last month to $2,100. Two-bedroom apartment rent has dropped 3.57% to $2,700.
Studio apartments are priced at an average of $1,800, down 2.70% from last month. Three-bedroom apartments are down 1.14% and are priced at an average of $3,500. There has been no change in four-bedroom apartments and are priced at $4,500.
PadMapper said that this downward trend “will only continue in the coming months.”
A report by Urbanation released earlier this spring reported similar predictions.
Urbanation stated that the decline in rental transactions “can clearly be related to the impact of the protective measures and economic uncertainty stemming from the onset of the COVID-19 pandemic, with renters less willing or able to take on a new lease at current rents, as well as the closing of Canadian borders and the logistical challenges with showing units and planning for a move in the current environment.”
At the time, Shaun Hildebrand, president of Urbanation, also attributed the decline to job losses, adding that this trend is expected to continue.