The average cost of rent in Toronto has topped a record $3,000 per month as the vacancy rate in Canada’s largest city remains below 2%.
The average monthly rent in purpose-built rental buildings completed since 2005 across the Greater Toronto Area (GTA) surged to a record high of $3,002 in this year’s first quarter, according to data from market research firm Urbanation.
The Q1 rise in Toronto rent prices represents a 13.8% increase compared to the same time last year. Condominium rents in the GTA averaged $2,741 per month in Q1, a 13.6% annual rise.
The average condo rent for a bachelor unit averaged $2,124, compared to a two-bedroom unit that averaged $3,125 per month during the year’s first quarter.
Demand for rentals in Toronto has increased amid high levels of immigration, falling rates of homeownership affordability, and a strong job market coming out of the pandemic.
The vacancy rate of purpose-built buildings in Toronto was 1.8% in Q1, the fifth consecutive quarter that it has been below the 2% mark.
Urbanation said that purpose-built rentals often command a higher price because the units are larger and newer, and they offer more amenities and legal protections against eviction compared to condominiums.
