Toronto rent drops again as the average price for a one bedroom falls below $2k
They've now landed at a mean of $2,158 for all residential property types and sizes: $1,967 for one-bedrooms, which were at one point in recent memory $2,314, and $2,569 for two-bedrooms.
This still makes us home to the second-highest rent prices of any major city in the country — preceeded only by Vancouver and followed by nearby Etobicoke and Mississauga — but also the largest drop in price year-over-year.
The latest National Rent Report is out. Rents are flat monthly, but down 9.5% annually. Price decline for condos & PBR in Toronto now the largest in Canada for major municipalities at -14%. Read more by @Rentalsdotca & @BullpenConsult here: https://t.co/l480SXEXre #ToRE #VanRe 🇨🇦 pic.twitter.com/9PABzlwea6— Big Ben Myers 🐂✒️ (@benmyers29) October 10, 2020
Rental rates for apartments in detached, semi-detached and townhomes were, based on this latest data from Rentals.ca listings, 20 per cent lower than the same time last year (now $2,839), while condo rents fell 16 per cent in the same period (now $2,262).
Purpose-built apartments in the third quarter of 2020 were surprisingly down very marginally, only three per cent from Q3 2019 (now $2,122).
Still, these are some of the lowest prices residents have seen in years in one of the world's most notoriously expensive cities, especially when we're used to prices rising both month-over-month and year-over-year — and experts speculate that they will likely keep decreasing.
Rent is still too high in #Toronto and needs to come down at least another 25- 30% for 1 bedrooms. Affordable housing is a RIGHT - not a luxury. The average rent for an apartment in Canada takes big drop since last year https://t.co/QRZO4bwEbb #greed #rentals— Christine Korda (@Christinekorda) October 13, 2020
Factors for this change include more supply, less immigration, an exodus of people moving elsewhere now that they are able to work from home instead of a downtown office, travel restrictions, relocation due to financial precarity, and an influx of former short-term rental units into the long-term market.
"There has been much discussion surrounding the drop in rents downtown due to the shutdown of many of the office towers, and a reduction in demand for short-term rentals," the report reads.
It adds that "with Ryerson and U of T downtown, as well as several other colleges, many students decided to stay with their parents, or move back with their parents to save money and learn virtually."
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