Toronto rent prices soar 16% as pandemic’s silver lining fades

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Rent prices are skyrocketing back to pre-pandemic levels in Toronto as nothing good ever really lasts…not that you’d necessarily call the 2020 COVID-induced rental market crash “good” .

New data released this week by Rentals.ca and Research and advice in enclosure reveals that the average price of a rental unit in the city jumped 16% last month on an annual basis, from $1,994 in February 2021 to $2,312 in February 2022.

That’s an increase of $318 in just 12 months – no small amount when added up over time. Of course, last year at this time the prices actually had decreases by 20% per year, which makes the sting much worse than it is.

COVID has rocked the rental market something fierce over the past two years, initially driving people out of town and sending vacancy rates through the roof, forcing landlords to lower prices in an effort to attract tenants. It was great except for the whole global pandemic.

By the end of 2020, annual rents were down more than 20% across the city, reaching the lowest prices we’ve seen in over four years.

Prices started to rise again in mid-2021 as Toronto began to recover (or so it thought) from the effects of widespread lockdowns, and except for a few stumbles, they have generally risen since – but not nearly as quickly as what we have seen over the past few months.

Vancouver is the only market where rental prices are currently higher than Toronto. Image via Rentals.ca.

Experts say the trend will most likely continue as the threat of COVID diminishes and new threatssome of them linked to out-of-control inflation are emerging.

“As employees return to the office and the population outpaces the pandemic, Bullpen Research & Consulting expects rental demand to gradually increase,” it read. the latest national report on rents.

“That, combined with supply chain issues, record inflation, rising interest rates and general uncertainty around things like gas prices, could continue to drive up rents. short term.”

In February 2022, the average one-bedroom apartment in Toronto cost $2,044, while the average asking price for two bedrooms was $2,778. Last month, the average monthly asking rent for properties nationwide was $1,820 per month, up 6.2% year-over-year.

You can see how Canada’s 35 largest cities fared in terms of fluctuating rental prices below:

rent report


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