Average GTA rent rises 19% in June: Report

Rents in the GTA continue to go through the roof.

The average monthly rent went up 19% in June to $2,403 from $2,018 in June 2021, according to findings by Bullpen Research and Consulting and TorontoRentals.com.

In May there was a 5.7% month-over-month increase and average rents jumped another 3.1% in June, which was the second highest monthly increase in over three years.

The report says the demand for rentals in Toronto spiked during the post-vaccine pandemic period because of record immigration, an increase in foreign students, and a number of university and college graduates coming for work.

The area also is suffering from an undersupply in new housing and restrictive planning policies.

Other problems such as supply chain disruptions have impacted the cost and availability of materials and GTA rents will continue to rise for the foreseeable future.

“Following two consecutive months of outsized rent growth of over 3% monthly, average rents in the GTA are up 19% annually, but remain below peak levels from late 2019,” said Ben Myers, president of Bullpen Research and Consulting.

“The rise in borrowing costs has shifted demand from the ownership market to the rental market, which has impacted the luxury rental market with the 90th percentile rent climbing 21% annually, compared to 9% for the 10th percentile.”

In Mississauga, the average rent for a condominium went up 25% year over year to $2,820 per month in June.

Markham had the second highest rent inflation year over year for condos in June at 20% to $2,469 per month.

In Toronto, average rent for condo rentals in June was up 19% costing $2,748 a month.

The price of a condo in North York was up 16% year over year to $2,487.

Scarborough’s average rents rose 15% to $2,344.

Oshawa’s average rent for condos increased 4% year over year to $1,787.

The luxury rental market in the GTA in June returned to the pre-pandemic high of $3,400 per month.

For the least expensive properties, rents rose 9% annually to $1,550 in June over the market’s low point in June 2021 of $1,427.