GTA average rent down more than 16 per cent annually last month: report

The next few months will likely be a renter’s market in the GTA, according to a report by TorontoRentals.com and Bullpen Research & Consulting Toronto.

The average rent for all property types was down more than 16 per cent annually in December, for the second straight month to $2,024, it says.

The report states the average monthly rent in the GTA has dropped 13 months in a row.

Richmond Hill, York, Vaughan, Oakville, and Markham are seeing rent drops ranging between 11.5 per cent to 16.2 per cent.

In Toronto, the yearly change for condo and apartment rentals dropped 19.4 per cent in December.

Some areas are seeing increases in rental prices: Brampton saw a 10.8 per cent jump with an average rental price of $1,864. Oshawa has seen an annual increase with an average rent at $1,650 per month.

“Rental rates continued to decline in the final month of 2020, and there is little evidence that rents will stop their downward trend anytime soon,” says Bullpen Research & Consulting president, Ben Myers.

“Despite anecdotal evidence that leasing activity has picked up, record condominium completions are expected in 2021, which reflects the record-high pre-construction condominium sales that occurred four years ago. Supply will continue to exceed demand in the short-term,” Myers says.

The second lockdown in Toronto, and stay-at-home orders in place, are also being attributed to reason there is no indication to show there will be a change in the decline of rent in the GTA soon.

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“Data and anecdotal evidence shows that tenants are seeking more space while working from home. With students staying home in early 2021, expect that trend to continue as parents with children look for more space to conduct virtual learning,” the report reads.