The average price for new rental listings has dropped nearly 15 per cent year over year
Toronto rental listing prices continue to decline as supply surges, according to a report from Rentals.ca.
The average listing price for a one-bedroom in the old city of Toronto for September was $1,967. That figure is down 2.2 per cent monthly and 14.9 per cent year-over-year. The average for two-bedrooms landed at $2,569, down 3.3 per cent monthly and 12 per cent annually.
While Toronto has the priciest one-bedroom rents in the country, Vancouver has the priciest two-bedrooms. Rental prices on the west coast city declined less than two per cent year over year. The average two-bedroom in Vancouver costs $2,712. The overall average rent in Vancouver at $2,249 leads the country, followed by Toronto at $2,158; Etobicoke at $2,095; Mississauga at $2,066; and Vaughan at $2,044.
Across Canada, Toronto and North York are the municipalities with the largest year-over-year average price drops at 14 per cent.
That is in stark contrast to Montreal, where rent grew annually by 17.2 per cent. Other Toronto municipalities like Etobicoke and York are down losing by 5 to 10 per cent. And, as if it belongs in British Colombia, average rent in Scarborough is only down 0.6 per cent.
Toronto rent prices for single-family homes are down at a steeper rent than even downtown condos. While condo supply boomed, rent prices declined 16 per cent in the third quarter. But single-family homes are down 20 per cent. Meanwhile, selling prices for single-family homes keep going up in the Toronto real estate market.
The COVID-19 pandemic is a major contributor to the declining rental market in Toronto. With so many people working from home, renters are looking for more square footage and green space, opting to live away from downtown. With the lowest average rent in the country at $950, Newfoundland is sounding mighty appealing, especially for remote workers.
Toronto rent prices were down across the old city except in one area: the M5T vicinity.
The average rent in the postal code covering Kensington Market and Alexandra Park stayed flat annually at $2,464.
The average rent in the M6G area surrounding Koreatown pretty much stayed flat, only down 0.5 per cent at $2,652.