Three things happening in the GTA’s rental market

Compared to last year, the GTA rental supply is tighter, competition is stronger and average rents are higher.

If you are looking to rent a condo in the GTA, the market is getting tighter, as the population continues to grow, the labour market remains strong and some would-be homebuyers have chosen to rent instead, due to higher mortgage rates. This trend will continue for the foreseeable future, with individual condo owners providing a lot of the available units, especially in the mid- to high-end part of the market.

Strong dip

There were more than 13,000 condo apartment rental transactions reported by GTA realtors from April to June 2022. Although this was down when compared to last year, this does not mean demand is decreasing. There was a strong dip in the number of rental listings available, dropping by almost 30 per cent year-over-year. With less choice, it was much more difficult for renters to secure a lease.

It will also cost you more to rent. Average rents for one- and two-bedroom apartments are now both at record levels, surpassing the previous peak back in the latter half of 2019. For the second quarter of 2022, the average one-bedroom condo rent increased more than 20 per cent to $2,269 compared to Q2 2021. If you are looking for a bigger space, the average two-bedroom rent was also up over the same period to $2,979.

Creative solutions

A low rental supply is a major problem in the GTA and will become even more pronounced in the short term. This issue is something about which TRREB and its members continue to raise awareness. Policymakers need to explore more ways to create rental supply. Whether we’re talking about purpose-built rental developments or investor-held condominium apartments, renters need a diverse supply of units.

If you’re interested in digging deeper into the rental market, you can stay up to date with our quarterly reports. We break down average prices, transactions and new listings each month with an easy to glance report. Visit trreb.ca to explore the latest look into the housing market. Plus, connect with a TRREB member realtor and search listings in real time on any device.