Renters continue to move out of Toronto for cheaper apartments in small towns


Average rental prices in Toronto have now been rising for seven straight months, starting in October – a significant trend given that they fell completely amid the COVID pandemic, shaking up markets both locally and in small businesses. cities across Ontario.

And yet, while we have seen steady month-over-month price growth since last spring, we had yet to see rents rise. Year after year in the GTA so far.

The latest Toronto GTA rent report from Bullpen Research & Consulting and LocationToronto.com show that October marked the first month since March 2020 that average rents in the Greater Toronto Area actually increased from the previous year.

Rents rose a modest 1.6% in October across all property types in the GTA between October 2020 and October 2021, reaching a new average of $ 2,137.

However, when broken down by specific areas of the region, we see wild variations in price growth rates.

Rents are starting to rise modestly in Toronto as the end of 2021 approaches, but prices are skyrocketing in nearby suburbs such as Richmond Hill, Burlington and Ajax. Image via TorontoRentals.com.

Toronto proper saw an annual increase of 3.9% in October, according to the new rent report, while average rents in Richmond Hill, Burlington, Ajax and Markham have all increased by more than 7% over the past year. same period.

“The narrative that tenants are fleeing the city center for larger units in suburban areas still shows up in the data,” note the report.

“While Toronto also experienced a positive change in average rental rates, York, East York and North York (all areas closer to Toronto) experienced negative year-over-year variations in average rental rates. . “

Whether despite or because of increased activity in the Toronto rental market of late, the “mass exodus” of younger downtown Toronto tenants seen earlier in the pandemic appears to be continuing.

One only needs to look at record rental price spikes in Ontario cities far beyond the GTA border to see continued evidence of this trend.

Soaring rents in desirable downtown neighborhoods could push some Torontonians into the arms of our city’s suburbs, especially as the vast majority of office workers continue to work from home.

rental price in torontoRent prices in Toronto are on the rise again after hitting a low in January 2021, but some zip codes are growing faster than others. Image via TorontoRentals.com.

What is the point of paying outrageous prices to live in riparian M5V or M5A zip codes, which soared 13.6% and 15.5% respectively last month, when you could do your job from a more pad. big and cheaper in Brampton?

This is a question people are clearly asking as the city slowly begins to reopen and rent prices rise again.

We’re also seeing data that suggests certain types of units are in higher demand than others, influencing where tenants might choose to live in the GTA. Average monthly rents for single-family homes, which are notoriously scarce in the downtown area, rose only 16.6% year-over-year in the Greater Toronto Area.

“Larger units continue to be popular with renters. Units with three or more bedrooms typically show higher annual variations in average monthly rental rates,” read the TorontoRentals.com and Bullpen report on Wednesday.

“Condominium apartments, after a long period of annual decline, are on the way to recovering as average rental rates appear to increase from early 2020 levels. Going forward, expect that these trends continue as the economy recovers and returns to normal. “

About Jermaine Chase

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