Average rents in the GTA increase 1.6% in October, up for seventh consecutive month
Erin nicole davis
A sign of the times, October marked the first month since March 2020 that average rents in the Greater Toronto Area (GTA) increased year over year.
The average monthly rent for all property types in the GTA rose 1.6% in October to $ 2,137 from October 2020 ($ 2,103), according to the latest Bullpen Research & Consulting and LocationToronto.com Toronto GTA Rent Report.
“October marked an important milestone in the recovery of COVID-19; average rents have increased year over year for the first time since the start of the pandemic, ”said Ben Myers, president of Bullpen Research & Consulting. “For anyone who has looked for an apartment to rent in the past, nothing is more normal than rising rents in the Greater Toronto Area. One and two bedroom condos and rental apartments are very popular, especially in downtown zip codes M5A, M5V, and M5G. This is particularly impressive given that new condos and rental units completed in the city of Toronto will end 2021 at the second highest level in more than 20 years (according to CMHC data).
Since the onset of COVID-19, average monthly rental rates have steadily declined throughout 2020 and early this year, hitting a low of $ 1,971 in March before starting to slowly increase. In early 2021, studio, one-bedroom, two-bedroom and three-bedroom units saw 14% to 18% drop in average rental rates year-over-year. Four- and five-bedroom units did not experience the same levels of decline, according to the report.
The ongoing narrative that tenants are moving out of downtown for larger units in suburban areas – especially as city offices remain closed – still appears in the data, according to the report. Average rents in Richmond Hill, Burlington, Ajax and Markham all saw annual average rent increases of over 7% in October.
Meanwhile, Toronto saw an annual increase of 3.9% in October. The major downtown Toronto postal codes have all experienced significant annual rental growth, with two of the most active areas, M5V and M5A, posting average rent increases of 13.6% and 15.5% respectively.
Comparing the numbers from October to March this year, potential renters in the GTA looking for a studio apartment will have to spend $ 60 more on rent based on average asking rents; renters looking for a one-bedroom could spend $ 120 more than in March; while two-bedroom units cost almost $ 160 more per month than they were seven months earlier.
The average rent for condominium apartments increased 11.8% year on year, from $ 2,161 per month in October 2020 to $ 2,416 per month in October. But the average condo for rent owned by investors is still $ 145 per month cheaper than in October 2019, as the average rent steadily declined during the second half of 2019 and 2020, the report points out.
Average monthly condominium apartment rents increased 13.6% year over year in Toronto in October, after falling 17.7% in October 2020. In Etobicoke, average monthly apartment rents in Toronto were Condominiums were up 14.8% year over year in October, after falling 15.2% in October. October 2020.
The report says data from three active condominiums shows the “roller coaster ride in rents since 2019”. The average monthly rent at Ten York fell 16% year on year in October 2020, followed by a 17% annual increase in October. The average rent for Harbor Plaza – East Tower fell 25% in October 2020 before increasing 12% in October. The average monthly rent for 87 Peter fell by 15% in October 2020 before increasing by 10% in October.
GTA apartments have yet to experience the same levels of salvage as condos and single-family homes. Year over year, the average apartment rental rate fell 2.2%, from $ 2,013 in October 2020 to $ 1,969 in October. “One caveat is that apartment incentives were high last year around this time, and many of those incentives are no longer offered. Many vacant units in high rent areas like Toronto have now been rented, leaving a larger share of listings in lower rent areas, ”the report read.
Average monthly rents for single-family homes increased 16.6% year over year in October, an increase of over $ 400, from $ 2,532 in October 2020 to $ 2,953 in October. While average rental rates declined for most of 2020 for single-family homes, rents in October exceeded 2019 highs.
As pandemic recovery efforts continue, rents are rising not only in the GTA, but across the country as well.
Erin nicole davis
Erin Nicole Davis is a born and raised Toronto writer with a passion for the city, its urban affairs and its culture.
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