Published on July 26, 2022 at 2:12 p.m.
If condo rentals are the benchmark, Oshawa remains a very affordable city, at least compared to its GTA cousins.
Oshawa has the cheapest condos to rent at $1,787 per month and the second-lowest year-over-year increase at just 3.8%, behind only Vaughan at 2.5%. Vaughan’s average rent for condos, however, was $437 more expensive than Oshawa at $2,224.
The most expensive condos to rent in the GTA, according to TorontoRentals.com’s latest report, are in Mississauga at $2,820, ahead of Toronto at $2,748. It should be noted that Mississauga’s higher rents were influenced by larger average units.
Mississauga also saw the largest year-over-year increase at 25.26%.
Rents are on the rise in the GTA, with the monthly asking rent for all properties rising 19% per year to reach $2,403 per month in June 2022, the report said.
People will see higher prices for small and medium units (studios, one-bedroom and two-bedroom units).
Toronto Rentals attributes the increase to rising interest rates, which prevent people from buying a new home. This has resulted in lower rentals in the market – listings on TorontoRentals.com are down 28% from peak levels last summer.
“The reduction in demand for property due to higher rates generally leads to lower house prices and further discourages buyers,” the report said.
The average monthly rental rate for a single-family unit in June 2022 increased 21% to $3,389 per month. Townhouses rose 16% to $3,085 per month. And even basement apartment rent is on the rise, rising 18% year over year to $1,815 per month.
Rents are expected to continue to rise due to supply chain issues, work stoppages and restrictive planning policies that have curtailed new construction in Toronto and the suburbs.
The median rent has fallen 30% from the high of $2,400 in late 2019 to the low of $1,850 in early 2021. Over the past year, the median rent in the GTA has increased by 20% per year to reach $2,250, but remains below the 2019 peak.
There has been a return to city centers in the post-vaccination pandemic period, which has further increased rental demand. Demand for rental housing has increased due to record immigration, an increase in the number of international students and a double cohort of post-secondary graduates moving for work. All of this is happening as Ontario sees record out-migration to the East Coast, as employees take advantage of permanent work-from-home arrangements.
“We expect GTA rents to continue to grow for the foreseeable future, albeit at a slower monthly rate compared to the peak of the past two months,” the report said.
With files by Karen Longwell
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