Toronto rental prices have declined for eight months in a row: report

Aug 25 2020, 3:30 pm

Average rental prices in the Greater Toronto Area decreased again in July, marking the eighth month in a row average rents have declined, according to data from a new report.

The report compiled by TorontoRentals.com and Bullpen Research & Consulting suggests the average monthly rent in Toronto has fallen to $2,194, which they say is an 8.7% annual decrease.

Toronto rents on the decline

TorontoRentals.com

Toronto’s waterfront neighbourhoods experienced the sharpest declines, which the report says could be due to declining interest in downtown properties in the work-from-home era.

“With a large part of the workforce still working from home there is a greater need for more space for home offices and a diminished need to be near a downtown office,” Matt Danison, CEO of Rentals.ca, said in the report.

On average, condominium landlords charged $260 less per month in July 2020 compared to July 2019, the report said.

But declining rental rates aren’t mirrored in the home-buying market, where buyer demand remains strong, the report’s authors say. Bullpen Research & Consulting’s president, Ben Myers, thinks falling rents may reflect a short-term vision where workers look for larger, less expensive suites that are perhaps outside the downtown core.

“The continued ownership demand reflects a long-term mindset of buyers who expect Toronto will return to its pre-pandemic desirability when things get back to normal,” he said.

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