The average monthly rent in the Greater Toronto Area (GTA) has increased 16.5 per cent since May 2021, according to the latest report from Bullpen Research & Consulting and TorontoRentals.com.
Although average rents are still a little below what they were in May 2019, reduced supply coupled with increased demand from immigration, the return of students, and recent graduates moving out of their parents’ homes have contributed to the rapid rise that we will likely continue to see throughout the year.
“The average GTA rent shot up month over month in May, rising by 5.7 per cent, the highest monthly increase since this data was first reported in 2018,” observed Ben Myers, president of Bullpen Research & Consulting. “Investor-owned condominiums led the way, experiencing significant annual growth of 25 per cent from May of last year. High demand for downtown rental properties, coupled with less supply due to rates hikes and delayed occupancies of new projects as a result of labour stoppages and supply chain issues are all contributing factors to the rent inflation.”
Adding to these tight conditions, fewer people tend to move during uncertain economic times, and thus more would-be first-time home buyers are remaining in the rental market.
Key facts & stats
Toronto had the highest average monthly rent for condominium rentals and apartments at $2,438, an annual increase of 19.8 per cent.
Burlington and Etobicoke followed closely, with average monthly rents of $2,233 and $2,263 per month respectively, with year-over-year increases of 18.3 per cent 17 per cent over May of last year.
The highest rents in GTA neighbourhoods from January to May for condominium rentals and apartments were in the Bay Street Corridor at $2,764 per month, an increase of 12 per cent over 2021 overall, and 1 per cent over 2019, the year when rents peaked.
The highest rent growth overall has occurred in Mississauga’s city centre, with rent for condo rentals and apartments up 28 per cent annually to $2,728 per month. Core rents are 17 per cent higher than they were in 2019.
Areas with annual rent growth of 16 per cent to 19 per cent include North St. James Town, Kensington-Chinatown, The Annex, Mimico and Niagara.
For the full report, visit Toronto GTA June Rent Report 2022 (torontorentals.com)
