Immigrants brace up for more housing pressure
House prices and rents in Toronto GTA and most parts of Canada are moving in opposite directions. House prices are sliding while rents are soaring. GTA rent prices in May saw the largest monthly hike in more than three years at 5.7 per cent as supply tightens and demand surges. Toronto set the record, with rent going up by almost 20%.
A new report by Bullpen Research & Consulting and TorontoRentals.com found the average monthly rent in the GTA increased by 16.5 per cent year-over-year, from $1,998 in May 2021 to $2,327 in May 2022.
In a statement, Ben Myers, president of Bullpen Research & Consulting said, “investor-owned condominiums led the way, experiencing significant annual growth of 25 per cent from May of last year. High demand for downtown rental properties, coupled with less supply due to rate hikes and delayed occupancies of new projects as a result of labour stoppages and supply chain issues are all contributing factors to the rent inflation.”
What are the reasons for the high house rents?
The surge in demand also stems from immigration, students, and recent graduates moving out of their parents’ homes.
In addition, fewer people tend to move during uncertain economic times, and more would-be first-time homebuyers are deciding to stay on the sidelines and in rental housing, drying up supply.
Canadian cities with the highest rents
In May, Toronto had the highest average monthly rent for condo and apartments rentals at $2,438 a month, an annual increase of 19.8 per cent.
Burlington and Etobicoke followed closely, with average monthly rents of $2,233 and $2,263 per month respectively.
From May 2021 to May 2022 Burlington saw an increase of 18.3 per cent and Etobicoke 17 per cent.
Next in line for average monthly rent for condo and apartment rentals were: Mississauga at $2,224, up 12.9 per cent year over year; Oshawa at $1,807, up 12.4 per cent annually; York at $2,083, up 12.2 per cent; Oakville at $2,299, up 11.2 per cent; North York at $2,102, up 10.2 per cent and East York at $1,898, up 8 per cent.
These are not the best of times for renters.