After bottoming out earlier this year, rent prices across Toronto have been slowly climbing back up over the past few months. But, as it turns out, some pockets of the city are still experiencing declines.
A new report from TorontoRentals.com and Bullpen Research & Consulting found that overall, rents in the GTA rose 0.9% month-over-month in June, bringing the average rent price up to $2,017. This marks the third month in a row with rental price increases.
Despite this, some areas of Toronto have still seen declining rent prices over the past few months. Etobicoke and East York both experienced rent prices drop during the second quarter of the year, falling by 0.1% and 0.3%, respectively.
But when it comes to specific neighbourhoods, some of the declines become even more prominent. Palmerston-Little Italy, for example, saw a 9.2% drop in rent prices during Q2.
Wychwood experienced a 6.6% drop, Dovercourt Park 6.2%, North St. James Town 3.8%, Wallace Emerson 2.2%, Cabbagetown-South St. James Town 1%, Church-Yonge Corridor 1.8%, Moss Park 1%, and Little Portugal 2.6%.
Interestingly, across the GTA, prices of single-family homes, which came into high demand during the pandemic, dropped by 1.7% from May to June, bringing the average price to $2,811. Basement apartments also saw a 2.4% drop, with prices now averaging $1,536.
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Even with these pockets of declining rent prices, the report predicts that city-wide, rental rates will continue to increase into the fall and next year.
“Average rental rates are on the rise again in the GTA as vaccinations increase, case counts diminish, and the region opens up,” the report reads. “Growth in the York Region and Durham Region municipalities has picked up, as well as the central downtown area, as workers prepare to return to the office. Incentives at higher-end buildings are being reduced or eliminated as demand picks up.
“Further rent growth is expected through the fall, with Bullpen Research & Consulting forecasting GTA rent growth in the double-digits in 2022.”