Among Canada’s five largest municipalities, Toronto is forecasted to have the strongest bounce-back in 2022, with an annual increase in the average rent of 11% to $2,495 per month. This is similar to how the rental market has performed in 2021, posting an annual increase of 10% following major declines during the pandemic-impacted 2020.
The average rent in Toronto in November 2020 declined annually by 20% to $2,082 per month. Rents have steadily increased since May of this year, reaching $2,300 per month this past November.
As has been the trend, larger units have experienced stronger annual increases in average rent, suggesting that tenants continue to seek these types of units while working from home. One and two-bedroom units experienced the largest declines out of all bedroom types in 2020, and their recovery has not been as sharp as the rest of the market.