Toronto rental prices are once again on the rise for the third month in a row, with two-bedroom units in particular driving the most recent surge.
A new report from Rentals.ca and Bullpen Research & Consulting found that Toronto rent prices spiked 4% last month, bringing the average price to $2,143. This follows the rising trend seen across many of the country’s major cities, including Vancouver, Calgary, Edmonton, and Ottawa, and is much more than the national average increase of 1.8%.
But the rise in Toronto prices wasn’t equal across rental types.
In fact, one-bedroom rentals saw just a 1% increase in July, bringing the average price to $1,855. This is still down 9% from last July.
Two-bedroom units on the other hand, shot up 4.2% in July, raising the average price to $2,606. This is down just 3.2% from July 2020.
“In Toronto, condo and rental apartment average monthly rent is down 4% annually, but up 4% monthly, as the market is bouncing back quickly,” the report reads.
Interestingly, rentals on the higher end of the price spectrum are increasing at a faster rate, with units in the 75th and 90th percentile of prices going up 6.5% and 20% respectively.
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Meanwhile, units in the 10th percentile of prices haven’t changed much, hovering around $1,450 for all of 2021. Rentals in the 25th percentile rose just 3.1%.
“The most ‘affordable’ units have not increased as fast as the most expensive units in the market, but it is only a matter of time before the lower end of the market gets pulled up,” the report reads, adding, “the idea that larger and more centrally located luxury units are increasing in demand is reinforced. This continues to bolster the idea that more and more tenants are searching for larger living spaces to accommodate working from home and going out less.”
Although Toronto’s rental price gains were large, they were handily surpassed by Vancouver, which saw a 6.3% increase in one-bedroom prices and a whopping 10% increase in two-bedrooms.
Montreal, surprisingly, saw prices fall in July, dropping 0.8% for one-bedrooms and 1.3% for two bedrooms.