As Toronto’s rental market continues inching toward a recovery after bottoming out earlier this year, a big boost in tenant demand could be on the horizon during the fall months.
The average rent price across all rental property types in the Toronto region rose on a monthly basis in May, according to the latest data and commentary from Rentals.ca. Prices for Toronto condo and apartment rentals were up 1.5 percent in May over the previous month, hinting that interest in the city’s downtown core is returning.
“The rental market in the GTA has turned a corner and is trending back up again; bad news for tenants, and good news for landlords,” said Ben Myers, President of Bullpen Research and Consulting, who partners with Rentals.ca to compile the monthly report.
“With Toronto entering the next stage of COVID-19 reopening, tenants will be reminded of the benefits of a centrally located apartment or condominium rental, as patios fill up and boutique retail shops open. We expect an increase in leasing activity as tenants look to take advantage of the current incentives at many buildings before they disappear,” he added.
The Rentals.ca report pointed to several major US cities, including New York and Chicago, that have recorded strong upticks in leasing activity over recent months. Assuming that Toronto is a few months behind these cities in seeing substantial tenant demand returning, 2021’s fall season should be much busier than the gradual recovery the city is experiencing now.
Myers is forecasting that Toronto rent prices will record annual gains in the 12 to 14 percent range in 2022 as borders and offices reopen and international students return to the city’s many campuses.
