Ten Toronto neighbourhoods have seen the average rent per square foot decline year over year in August and September 2020.
The change is noted in both condo and rental apartments.
The report says average monthly rent for rental condos in old Toronto (pre-amalgamation boundaries) declined by 16.9% from September 2019 to September 2020, and now sits at $2,222 per month. In the same time frame, rental apartments saw the average rent drop by 6.8% to $2,082.
Of the 10 neighbourhoods highlighted in the report, the largest decline overall was seen in Little Portugal, where the average rent per square foot dropped 17% from $3.84 in September 2019 to $3.17 in September 2020. The difference between August 2019 and August 2020 was only 12%, dipping from $3.90 to $3.45.
Niagara saw the smallest change – just 4% – from August 2019 to August 2020. Rent fell from $3.65 to $3.49.
The neighbourhood with the greatest decrease in both months was the Church-Yonge Corridor. In August and September 2019, rent was $4.03 and $4.05 per square foot, respectively. In 2020, it had dipped by 14% to $3.48 in August and $3.47 in September.
Of those listed, South Parkdale was the most inexpensive neighbourhood to rent in. Average rent per square foot sat at $3.28 in August 2020 and $3.08 in September 2020, down from $3.47 in both months last year. A six and 11% decrease, respectively.
The Bay Street Corridor remained the most expensive neighbourhood. In August 2019 the average rent per square foot was $4.11, and dropped 10% to $3.69 in August of this year. September 2019’s average was $3.99, but fell 13% to $3.48 in September 2020.
“Centrally located condo rentals in Toronto continue to see significant rent decreases, especially the smallest suites, as tenants look for cheaper units with more space to accommodate their work-from-home needs,” said Matt Danison, CEO of Rentals.ca
The reports says the average level of rental apartments under construction in 2020 is higher than any time over the last 30 years.
“Many of these apartments will be completed in 2021 and 2022, and will continue to add to the supply, which could keep rents lower if a vaccine is not approved during that time,” it says.