The average rent in Toronto is 20% more than it was a year ago
Canada’s “significant” lack of housing, coupled with rising interest rates and persistent inflation, led to a staggering increase in the cost of rent in Toronto last month.
According to the July 2022 National Rent Report from Rentals.ca and Bullpen Research & Consulting, the average rent in Toronto hit $2,463 in June—an annual increase of 20%.
The average rent for a one-bedroom in the city reached $2,192 in June, representing a 2.8% increase from May, and an annual rise of 18.5%.
A two-bedroom in the city now runs an average of $3,115 per month—up 3.8% from May, and a staggering 23.4% increased from June 2021.
“There are many moving parts that can affect the housing market across Canada, including rising interest rates, persistent inflation, supply chain issues, and employers’ decisions about requiring in-office work,” the report reads.
“Canada remains significantly undersupplied for housing, which continues to impact rental markets.”
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Toronto’s ever-rising rents made it the second-most expensive city in Canada last month. Vancouver topped the list of 35, but five other Ontario cities made the top 10.
Provincially, Ontario had the second-highest rent in the country in June. At $2,232, the average rent increased 14% year-over-year but remained $47 below June 2019 levels.
The cheapest rent in the province can be found in Waterloo. In 30th place out of 35, a one-bedroom in the city runs $1,224 per month, while a two-bedroom costs an average of $1,831.
Canada-wide, the average rent was $1,885 in June, an annual increase of 9.5%, but still 3.5% than June 2019 levels.
“While it is difficult to forecast during these unpredictable times, Bullpen Research & Consulting and Rentals.ca expect rent growth to continue,” the report concluded.
“Especially with a resale housing market correction underway, and future interest rates hikes still on the table.”