Report shows steep rise in rents in Toronto, echoes findings from other major cities

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TORONTO—A report from real estate market research firm Urbanation Inc. says rents in the Greater Toronto Area are rising rapidly, echoing the latest numbers from online rental platforms in other major Canadian cities.

The Urbanation report says lower vacancy rates in Toronto in the second quarter pushed average rent up to $2,533 with a record $3.57 per square foot, up 5.9% in the second quarter from compared to the first.

It says annual rent growth hit 16.7% as the vacancy rate fell to 1.4% from 5.1% a year ago.

A similar story is unfolding in other Canadian cities as people return to major centers for work, international students return and more people delay buying a home due to uncertainty. market and economy.

Rentals.ca’s June report found that average rents in Canada rose 9.5% from a year earlier, while Vancouver jumped 24.7% from a year earlier. and Calgary saw a 26.1% increase.

Other cities saw more moderate increases, including a 5.4% year-over-year increase for Montreal and a 3.6% increase for Edmonton, while across Canada, the average June rent of $1,885 is still 3.5% lower than Edmonton. in 2019.

Data from Urbanization revealed that while studio prices were still around 1% lower than pre-pandemic rates, one-bedroom apartments with a den saw their prices rise by 6.4% compared to 2019 and rentals of two bedrooms plus the den increased by 9.4. percent.

He also noted that there were almost no rental properties under construction in the second quarter with just 87 housing starts, compared to an average of 1,916 in the previous four quarters, although total rental construction of 18 976 units is still at its highest level for several decades.

Urbanization chairman Shaun Hildebrand said in the report that the decline in construction could be partly attributed to data volatility, but is also likely affected by rapidly rising construction costs, development and borrowing and approval delays.

“With housing affordability at generational lows and continuing to deteriorate, it’s concerning to see rental demand and supply deviate so sharply,” Hildebrand said.

© 2022 The Canadian Press

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