The average Toronto condo now costs nearly 50% more per month than in early 2021.
According to the latest Bullpen Research & Consulting and Toronto GTA Rent Report, the average monthly rent for a condo in the city hit $2,963 in August.
The figure is a 43% increase from the below-$2,100 average seen early last year, the lowest COVID-related dip in prices. It’s also a 9.1% jump from the August 2019 average of $2,715.
The average rent for apartments in Toronto has also increased significantly as of late.
In the third quarter of 2022, the average rent for an apartment in the city was $2,533, a 13.8% rise from the second quarter, and a 30.7% increase from the low of $1,938 seen in the first quarter of 2021.
“The largest factor in the rent inflation is the Bank of Canada’s decision to raise interest rates, which has made owning a home more expensive and resulted in a swift decline in prices in the resale market,” the report reads.
“With future rate hikes still on the table, demand will continue to increase in the rental market. High demand combined with tight rental supply could cause rents to reach new highs in the next few months.”
In August, the average rent for all property types in the Greater Toronto Area hit $2,528, an annual increase of 21%. Prices are up 28.8% from the COVID-related lows of early 2021.
On a monthly basis, the average GTA rent rose 2.7%, the fourth straight month to see at least a 2% rise.
“From May to August, the Greater Toronto Area rental market has experienced four significant monthly rent increases, as tenant demand has skyrocketed due to interest rate changes, a resale house price correction, and the typical seasonal fall uptick,” said Ben Myers, president of Bullpen Research & Consulting.
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Across the GTA, larger units have seen steeper price increases over the last year and a half.
The average monthly rent for studios hit $1,771 in August, a 22% increase from their 2021 low. One-bedrooms rose 19.6% to $2,093, while two-bedrooms increased 26.3% to $2,175.
At $3,337, the average rent for three-bedroom or larger units was 25% higher than their pandemic lows.
By neighbourhood, the highest rent for all property types in Toronto can be found in the Bay Street Corridor, where residents pay an average of $2,779 per month. The area also boasts the priciest one-bedroom apartments, at $2,460.
The most expensive studio apartments are located in Little Portugal, and cost $1,951 per month, while the highest-priced two bedrooms can be found in Casa Lomo for $3,567.
At $4,805, the most expensive three-plus bedroom abodes are situated in the Yonge-St.Clair neighbourhood.
Alternatively, the least expensive studios, at $1,390, are in Kensington-Chinatown, and the cheapest one, two, and three-bedrooms in Toronto can all be found in O’Connor-Parkview, running $1,478, $2,001, and $2,477 per month, respectively.
It costs roughly $1,000 less every month to live in the O’Connor-Parkview neighbourhood than it does to live in the Bay Street Corridor.