Great news for Toronto owners and landlords! Rental prices are rising. Bidding wars for rentals are becoming a new norm in the GTA.
Bidding wars were often more associated with buying homes but, with the anticipated slow return to office buildings and places of work as well as university and colleges resuming classes, rental properties have become a hot market.
The pandemic has shifted many tenants’ wants and preferences. Many prefer larger suites and fewer roommates. Despite many returning to the offices, there is still a significant number of workers who will remain working from home, either full-time or part-time. Because of this, many larger suites, particularly 1+1 and 2-bedroom units are highly sought after and their price is rising.
According to the latest National Rent Report, the average rent in Canada has increased, trending for the third month in a row. Since July, the average rent price is up 1.8% from the previous month.
Of the 35 cities that were analyzed in the report, Toronto came second in rental price growth, only losing to Vancouver. 1-bedroom rents rose 1% monthly at an average price of $1,855 while 2-bedroom rentals increased 4.2% at an average price of $2,606.
Interestingly, luxury units in centrally-located areas in Toronto were in higher demand than many smaller and more affordable units in the city. Many tenants are increasingly moving towards larger spaces and more convenient areas to facilitate the need to go out less and work more from home.
Behind Toronto in the report, Etobicoke came third, followed by Victoria and Mississauga. On a provincial level, while British Columbia recorded the highest rental rates in July across all property types with an average price of $2,175 (up 7% annually), Ontario still managed to hit a total average price of $2,024 across all unit types which was a 3.3% monthly increase.
It’s a good time to be in the rental market, particularly if you have a centrally-located luxury unit. Interested in learning more about rentals? Get in touch with Fridman Team.
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