Since 2020, the Toronto housing market has been seeing a continuous drop in rentals. According to a report by torontorentals.com, the GTA witnessed a 17% drop in rental rates since last year.
Average House Rent in GTA
Toronto Rentals regularly shares its rental reports for the market. On March 1, 2021, the company shared its report for Jan’21. According to the report, the average rent across all types of homes witnessed a dip of 17% in GTA. This includes basement apartments, rental apartments, condo apartments, townhouses, and single-family homes.
The average house rent in the GTA in Jan’21 was $1,993 per month, compared to $2,411 per month in Jan’20. Compared to Jan’19, the drop is around 12%, where the average rental price was $2,261 per month.
Average Rental Rates for Single-family Homes
Besides the high demand for single-family homes in the area, the rental price mostly witnessed a dip in the Greater Toronto Area. According to Toronto Rentals, the average single-family home had a rental rate of $2,403 per month in Jan’21, compared to the average rate of $2,854 in Jan’20, showing a drop of 15.8%.
With a reverse trend where people headed towards the suburbs, the rental rates started declining. Furthermore, the low interest rates result in a buying trend, causing a further decline in rental values.
Average Rental Rates by Bedroom Type
The report also outlined rental rates according to bedrooms in a house. A complete chart of house rentals with bedrooms ranging between 0-4 is included here:
The average rent in Q1 of 2021 for a 1-bedroom house (including condos, apartment, and single-family homes) witnessed the largest dip of 16%, dropping to $1,763 per month in Q1’21 against the rental value of $2,106 per month of Q1’20.
However, for a 4-bed unit, there was an upward trend. In Q1’21, the average rent for a 4-bedroom house was $3,130 per month compared to $2,983 per month of Q1’20. The increment was around 5% year-over-year.
For a studio apartment and a 2-bed unit, the decline in rental value per month was around 15% in Q1’21 compared to Q2’20. While the dip for a 3-bed unit was only 9% in Q1’21 against Q1’20.
The report is an extraction from Toronto Rentals and primarily focuses on rental values for single-family homes with a little comparison with other types of homes. Such comparisons offer vital information while making decisions like buying a home.
It is evident from the stats that large places, including bungalows and single-family homes, are taking the lead over condos and studio apartments. This real estate trend
could carry on even this year, as people are still working from home and avoiding many interactions with the outside world.