Toronto lease costs up 31% in previous 12 months: report

The common value of a one-bedroom condo in Toronto rose greater than six per cent in September as tenants continued to face persistent lease will increase, a brand new report suggests.

The report, Ready by Leases.ca and Bullpen Analysis & Consulting, it signifies that the typical month-to-month value of a one-bedroom unit in Toronto reached $2,474 in September, whereas the value of two-bedroom models reached $3,361.

One-bedroom rental costs within the metropolis are actually up 27.5% year-on-year after being hit earlier by the COVID-19 pandemic.

Two-bedroom flats have elevated by 27.7% year-on-year, however in September that they had a extra modest enhance of two.9% month-on-month.

In a information launch, Bullpen Analysis & Consulting president Ben Myers mentioned a part of the rise “is attributable to the market’s bigger models and higher-end constructing completions including costly listings.”

However he mentioned that the rise in demand can be driving up rents, despite the fact that the housing market has undergone a major correction.

“Rental demand has elevated considerably attributable to rising rates of interest, falling owner-occupied housing costs and altering priorities following the pandemic,” he mentioned.

Toronto rental costs fell 11 p.c yearly in Could 2021 and 6 p.c yearly in Could 2020, as many individuals left town searching for extra space through the COVID-19 pandemic.

However costs have been rising steadily in current months, particularly in city areas.

The newest information launched by Leases.ca and Bullpen Analysis & Consulting means that final month the typical asking value throughout all varieties of leases in Canada was up greater than 15 per cent 12 months over 12 months.

Vancouver had the best common rental value at $3,225 monthly, adopted by Toronto at $2,855.

Ontario’s common lease rose 18.4 per cent year-over-year to $2,451 a month.

Trying particularly at condos, the typical rental value in Toronto was $2,988 in September. It beforehand fell to a low of $2,053 in February 2021.

“The identical components which have affected rental demand are nonetheless affecting the market in September. Rising rates of interest damage property costs and maintain potential patrons within the rental market. Second, a softening property market, with prospects for additional declines, is protecting potential patrons on the sidelines, ready for the market to backside out,” the report mentioned.

Whereas rental demand is anticipated to rise, the report notes that web page views per itemizing in September fell for the primary time in months.

The authors additionally level out that the rental market is seasonal, with demand being increased within the fall.