The Toronto rental market is one of the hottest in North America, renting at ridiculous prices and putting lots of money into investors’ pockets. However, the Covid-19 pandemic affected Toronto condominium rentals prices, and investors are worried if prices will continue going down. Thus, our real estate experts are here to analyze the rental market and decide if it’s best to rent out your condo.
Average Condominium Rent Prices in Toronto
The average condominium rent prices in Toronto are the lowest since the advent of the pandemic. It’s surprising to see a bubbling house market like Toronto witness a sharp decline for almost fifteen months, leaving homeowners and investors in a state of uncertainty.
Despite the low rental prices, Toronto still maintains its position as one of the most expensive cities in Canada and the whole of North America.
Decrease in Average Monthly Rent
According to a report from torontorentals.com and Bullpen Research & Consulting, the average monthly rent in Toronto for all properties, including condos declined in February 2021 for the fifteenth month in a row. In the Greater Toronto Area, condo monthly rental prices dropped by 18%.
Condo rental prices Year over Year are also down to 16.3%, reaching an average of $1,986. Downtown Toronto recorded an almost 20% decline in average rental prices compared to 2020. These statistics show that the condominium rental market in Toronto is going through a difficult phase.
But don’t expect this to last for long, especially now that the Covid-19 vaccine is circulating. The Toronto market is resilient and will always bounce back from difficult times, even during the Covid-19 hit period.
As mentioned earlier, the pandemic is the causative factor for the rental price decline of condos in Toronto. The pandemic created a high vacancy rate, as the rate of immigration slowed down considerably. Some people started moving out of the city and subletting their homes for long-term leases.
The good thing about the price decrease and the high vacancy rate is tenants will find renting a condo more affordable now than before. Some condo owners will not hesitate to rent their homes to get cash to take care of their immediate needs.
Condo Listing Prices in Toronto
Due to the decrease in demand, condo listings increased in Toronto. Condos listed for rent in Toronto on the Zillow website are about 2,200, with the price averaging $2000 per month [1]. With lockdown relaxed in some places and businesses reopening, our real estate team expects homeowners to list more of their properties.
Forecast in the Coming Years
Our housing team expects rental prices to go up in the coming years. Currently, Toronto condominium rental prices have begun to rise for the first time in fifteen months. Monthly rental prices increased by 0.3% from February to March 2021, according to Bullpen Research reports.
Experts suspect that some factors like mass urbanization will create an imbalance between supply and demand, which will force tenants to compete for condos. This will keep the rental market relatively afloat in the coming years. However, don’t forget that many people will opt to buy a home rather than renting because of the low mortgage rates.
Another factor that could cause rental prices to soar is the availability of vaccines. With people vaccinated successfully, the government will reopen businesses, and people could return to work.
People will continue to immigrate into the city in search for better opportunities. It will keep the housing market on a gradual rise.
Should condo owners decide to rent their condo units now or wait for prices to go further up? Looking at the current market, it won’t be bad to rent out your condo, especially as offices are reopening. Typically, Spring is the period with the highest rental demand, so we will have to wait to see how the market turns out.
FAQ
How do I find a condo to rent in Toronto?
To find a condo to rent in Toronto, you need to look for trusted apartment rental websites. You can look for apartments to rent on websites like PadMapper, Walk Score, Rentals.ca, Condos.ca, Realtors, etc. These apartment rental websites are good platforms for a more straightforward condo hunting.
Conclusion
It’s no news that Toronto condominium rentals prices dropped for fifteen months consecutively, starting from last year until February 2021. Thankfully, rental prices have started to go up, meaning the market is gradually bouncing back. Condo owners looking to make some profits off their condos can now list their properties in the rental space.
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