Rental units in the Greater Toronto Area (GTA) are scarce and as a result rent prices have skyrocketed to over $3,000 per unit, a new report says.
Monthly rent for purpose-built rental buildings created for leasing since 2005 in the GTA surged to a record-breaking high of $3,002 in the first quarter, according to a new report from Urbanation released on Apr. 20.
The market research firm reports this figure is 13.8 per cent higher than the first quarter of last year.
On average, condo rental prices were $2,741 per month in the first quarter, with a 13.6 per cent jump from this time last year.
READ MORE: GTA home prices rose in March as competition between buyers heats up: TRREB
The report says many are looking into buying smaller units, including bachelors and one-bedrooms as the prices for rental condos rise.
The average condominium rent for a bachelor unit is $2,124, while an average two-bedroom unit is $3,125.
“The GTA rental market remained substantially undersupplied during the first quarter of 2023. Even though supply is set to increase in the near term, it is expected to be short-lived and insufficient to offset demand,” Shaun Hildebrand, Urbanation president, said in the news release.
“The fact that rental construction has dropped by over 60 per cent in the last year despite rents having risen to over $3,000 is indicative of the economic challenges developers are facing,” he continued.
The report also details demand for rentals has grown due to increased levels of immigration, the difficult job market and many being unable to afford homeownership.
The vacancy rate of purpose-built buildings was 1.8 per cent in Q1, marking a fifth straight quarter below two per cent.
