The average monthly rent in the Greater Toronto Area (GTA) was down for the 11th straight month, with rent for all property types taking a dive at over 13% in October.
And many Toronto regions took a significant hit.
When it came to one-bedroom suites, they were down 12%, and two-bedroom units were down 10% in October.
According to the report, condo rentals have steadily declined from August of 2019 to October 2020, a 16% drop from last year’s peak rent level. On average, a tenant looking to lease a condo paid $400 less in October 2020 versus the same time last year.
“Average rent in the former City of Toronto continues to decline, and will likely finish the year down 20 percent annually, an unprecedented one-year decline,” said Ben Myers, president of Bullpen Research & Consulting, in the report.
“The second wave and lockdown will further erode confidence in the return of the downtown core rental market. However, prospective tenants continue to look at properties in Toronto with the Bay Street Corridor and Davisville areas being the most popular.”
Looking at former municipalities that make up the amalgamated City of Toronto, many experienced significant declines, including:
- East York: 20%
- Old Toronto, 17%
- Etobicoke: 15%
- Mississauga: 13%
- Markham: 13%
- York: 11%
- Vaughan: 11%
- North York: 8%
- Scarborough: 6%
The report shows that for condo rentals and apartments, year-over-year average rents have changed drastically.
For example, in Etobicoke, condo rents were up 9% annually in October 2019 but down 15% annually in October 2020. North York “experienced an even wider swing,” with condo rents up 12% last year and down 17% this year.
However, the suburban communities surrounding Toronto, such as Oshawa, Richmond Hill, Brampton, Burlington and Ajax, are faring better than the downtown, with average monthly rents for all property types declining less than 4% year-over-year in October.
As Ontario is currently in its second COVID-19 wave with Toronto and Peel Region in another lockdown, it’s unlikely the rental market will bounce back soon.