Toronto's average rental price dropped five per cent in April
With rising unemployment, health fears and universities moving online, renters have avoided moving and landlords have dropped asking prices
by Sadaf AhsanIf you're looking to rent right now, you're in luck: rental rates in the Greater Toronto Area dropped in the last month as the pandemic has continued.
The average monthly rental rate for all property types declined by 2.7 per cent to $2,180 per month, according to TorontoRentals.ca's May rent report. For reference, the average monthly asking rent in the city peaked at $2,328 in August of 2019, but was still up 1.3 per cent annually in April of this year.
Of all municipalities in the GTA, Richmond Hill had the highest rent in April at $2,387 per month, due to having more single-family homes, which pull the average up, and fewer small and older rental apartments, which pull it down.
Richmond Hill was followed by the former city of Toronto at $2,362 per month, and Etobicoke at $2,337 per month. Meanwhile, Scarborough had the lowest average rent at $2,023 per month, declining by less than 1 per cent monthly, but having grown the most year-over-year at 10 per cent.
The city saw rents drop by five per cent both monthly and annually in April due to a rise in former short-term rentals hitting the market, which inflated a market already weakened by the pandemic, and with many choosing not to move at a time of great financial uncertainty and health risks.
Most of the listings in Toronto are either condominium apartments or rental apartments, both of which have seen significant declines since March. Condo rates dropped 4.2 per cent month-over-month and rental apartments dropped 11.2 per cent monthly, the report states.
The median condo apartment in April was listed at $2,299 per month, down by over 8 per cent from April 2019, where it sat at $2,500. The median rental apartment in April 2020 was up by $20 per month over April 2019.
In an effort to encourage tenants to move, many landlords have been lowering their asking rent. Still, notes the report, "we really have no idea how much pent-up tenant demand there is, and if those plans have changed with lost jobs, lost wages, and reduced opportunities for many workers in this depressed economy."
Whatever the case, with rising unemployment rates, health fears and universities and colleges moving online, renters have avoided moving house, "reducing move up, move-down movement, as well as the creation of new households from recent graduates, students and immigrants."
Whether news of all property types seeing a drop in rental rates will affect the market remains to be seen, as the summer approaches and the new school year is only months away.