Toronto condos lead GTA rental surge with 24% gain in April, report finds
Denise Paglinawan
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Overall rents up 12 per cent
Demand for downtown condo rents have skyrocketed back to pre-pandemic levels. Photo by Bloomberg files
Monthly rents in the Greater Toronto Area increased by an average of 12 per cent year over year in April and are expected to continue to rise, albeit more slowly, according to a new report by a rentals website.
The latest Bullpen Research & Consulting and TorontoRentals.com rent report, which analyzed monthly, quarterly and annual rates and trends in the Toronto and GTA markets, found average monthly rent increased in April to $2,204 from $1,974 in April 2021 when all property types were taken into account.
Toronto condominium rents saw the largest gains, surging by more than 24 per cent to $2,583 from $2,077.
“Overall, the GTA rental market has flattened out this year, however, the downtown condo rental market is hotter than any period since the fall of 2019,” Ben Myers, president of Bullpen Research & Consulting, said in a press release.
The downtown condo rental market is hotter than any period since the fall of 2019
Ben Myers
As the economy continues to reopen and workers return to downtown offices after two years, demand for downtown condo rents have skyrocketed back to pre-pandemic levels.
While the report said rents are expected to continue to increase, they may not be at the same pace as the one experienced in the second half of last year.
Average monthly rents saw eight consecutive months of increases from April 2021 following a decline for most of 2020 and early 2021, when the COVID-19 pandemic hit markets the hardest.
Condos were hit the hardest but are recovering the quickest.
The report found that condo apartments had an average monthly rental rate of $2,509, a 21 per cent increase from April 2021’s $2,067 per month average, also representing a month-over-month increase of 3.6 per cent. This average is now higher than the pre-pandemic rate of $2,473 per month in February 2020.
Mississauga condo rents were a close second to those in Toronto, with nearly 24 per cent growth to $2,632 from $2,126.
Scarborough had the lowest April growth rates, but still rose nearly 15 per cent year over year to $2,253 from $1,963.
Meanwhile, rent for all Canadian properties listed on nationwide rentals website Rentals.ca averaged $1,821 per month in April, an annual increase of nine per cent from $1,676 per month in April 2021. This puts Greater Toronto Area prices well above the national average.
© 2022 Financial Post
