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

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.

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.

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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.