Another month, another rent increase in Toronto.
With interest rates on the rise, would-be home buyers stayed put in the rental market, leading to a “sharp” rise in rent in May.
According to the June 2022 National Rent Report from and Bullpen Research & Consulting, the average Toronto rent in May was $2,474 — an annual increase of 20%.
The average rent per square foot was $3.58, a “significant” yearly jump of 15%.
The average monthly rent for a one-bedroom unit in the city was up 15.7% year-over-year in May and now sits at $2,133. The figure is a 3.3% increase from April.
A two-bedroom unit now costs, on average, $3,002 per month. It’s a 21.5% increase from 2021 and a monthly jump of 5.4%.
Toronto’s rising rental rates made it the second-most expensive city on the list of 35. Rent was only higher in Vancouver; six of the 10 priciest cities were in the GTA.
The cheapest rent in Canada can be found in Saskatoon. A one-bedroom in the city costs, on average, $975 per month, while a two-bedroom runs $1,145.
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Rental rates rose nationally in May as the market moved ever closer to the pre-pandemic highs seen in 2019.
The average rent for all Canadian properties listed on Rentals.ca in May 2022 was $1,888, a year-over-year increase of 10.5%. On a monthly basis, rents were up 3.7%, which is the largest monthly increase since May 2019.
“After relatively flat rents on average in Canada during the first four months of the year, rents rose sharply in May, as interest rate hikes dissuaded would-be buyers from leaving the rental market,” said Ben Myers, president of Bullpen Research & Consulting.
“The typical seasonal increase in demand in the spring, coupled with renewed interest in more expensive downtown properties in Vancouver and Toronto also contributed to the rise in rents nationally.”