First, the not-so-great news. Toronto’s rent prices remains quite high. In fact, in the GTA, the average monthly rent increased 16.5% year over year for all property types in May to $2,327. And in Toronto, that average is even higher. But, the good news is some Toronto neighbourhoods continue to offer cheaper rent than what the average cost is.
According to Rentals.ca, Toronto had the highest average monthly rent for condominium rentals and apartments at an average of $2,438, and an annual increase of 19.8%. The highest rents in GTA neighbourhoods from January to May for condominium rentals and apartments were in the Bay Street Corridor at $2,764 per month.
This is followed by the downtown core at $2,728 a month. And yes, these are the actual costs right now.
“Reduced supply coupled with increased demand from immigration, more students, and recent graduates moving out of their parents homes have contributed to the rapid rise in rents,” states Rentals.ca’s monthly report.
“Also, fewer people tend to move during uncertain economic times, and more would-be first-time home buyers are deciding to stay on the sidelines and in rental housing, drying up supply.”
Even in Mississauga’s core, which is the city centre, rent went up 28% to $2,728 per month.
So where are some areas still renting below average?
Some of the cheapest neighbourhoods for rentals right now, according to the Rentals.ca report are:
- South Parkdale – where the average rent is $1,767
- Cabbagetown, South St James Town – $1,843
- Weston – $1,936
- Thorncliffe Park – $1,991
- High Park North – $2,006
- Wallace Emerson – $2,058
- Islington, City Centre West – $2,149
The report stated that the only market where rents are lower than last year for condo rentals and apartments is Cabbagetown. As well, Parkdale rents this year are still way below the 2019 peak.
We’re staying away from renting in the Bay Street Corridor for now.