Looking to find new digs this fall? Toronto real estate prices have soared over the past year, so many of our readers have been discussing the rental market. So we took a peak at the Toronto Real Estate Board’s (TREB) latest rental report and thought we would give you folks a breakdown of what’s happening in the world of rentals.
Prices Are Increasing
No surprise that prices are increasing, but not nearly as much as you might have guessed. Despite Toronto real estate prices increasing by ~17% this year, one-bedroom rentals increased by 6.4% to $1,710 on average. Still, that’s more than 4x the 1.49% rate of inflation the Bank of Canada is reporting nationally. Although let’s face it, national inflation rates are pretty much useless, they should be reported regionally since prices of things in Moosejaw are probably adjusting just a little differently from Toronto.
Competition Between Renters
Most of the rapid price increases are being attributed to “competition between renters”, with people fighting over the 19.3% less units listed for rent this year from the second quarter of 2015. Although, only ~70% of the 12,337 units listed for rent actually ended up being leased. There hasn’t been a lot of numbers on whether this mismatch of inventory is based on price or location, but mild wage growth in Toronto combined with millennials leaving home later in life might indicate it’s the former over the latter.
This Is Only TREB
Keep in mind, these are only apartments listed through TREB – so that off-market apartment you rented from your mom’s friend isn’t included in these statistics, and a good portion of Craigslist ads wouldn’t be on there either. It does however serve as a decent benchmark of what the average price in these neighborhoods are, and should give a decent estimate of what you would pay (or charge) for a rental.
Happy apartment hunting!
Price data courtesy of Toronto Real Estate Board, adjusted to standardized City of Toronto wards.
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