Condominium apartment vacancy rates across the Greater Toronto Area have fallen dramatically since last year, resulting in ballooning rent prices.
Average condo rents were up by double-digits annually for all bedroom types in the second quarter of 2022, surpassing record levels set in summer 2019. The average one-bedroom rent increased by 20.2% year-over-year to $2,269. Over the same period, the average two-bedroom rent was up by 15.3% to $2,979.
The Toronto Regional Real Estate Board reported 13,203 condo apartment rental transactions in Q2 2022 — down 11.4% compared to Q2 2021. The dip in rentals was not the result of waning demand but instead a pronounced drop in the number of rental listings, falling by almost 30% year-over-year. With less choice, it was much more difficult for renters to get deals done.
Market conditions are expected to tighten further in the coming months. Higher borrowing costs have meant some would-be purchasers are now forced to rent or continue renting. Combined with a growing population, the rental pool will continue to swell. Competition between renters will persist, putting extremely strong upward pressure on average rents.