Rent will continue to rise in 2020 in the main metropolitan area in Canada but while the increase will not be as many as several years, finding the right leases will continue to be a challenge, according to housing experts from all over the country.
According to a rental report, the annual rental rate in Toronto might rise by as much as 7% by 2020, 5% in Montreal, 4% in Ottawa, and 3% in Vancouver.
Rentals speak with 25 professional housing and experts including seniors. Canada mortgage and housing analysts (CMHC), data analysts, economists, developers, affordable housing advocates, investors, and members of the city council for their insight in Canada.
The Toronto rental markets are hot with the surge in demand
The overall rental had decreased for more than a year, but the greater Toronto region had experienced a boom in demand, resulting in an average lease. According to Bullpen Research & Consulting and Torontorentals.com's Toronto GTA rental test report, the average rental rate in the GTA grew 3% to $ 2,078, with Toronto seeing the greatest monthly increase of 4.7 per cent to $ 2,167.
A steady increase in July marked the fourth consecutive month so that the average rental increased with a monthly decline after 14 consecutive months. With demand firmly increasing, agent leasing in the Toronto region continues to report batches of offers for the main rental suite because the active list continues to decline, while the suite in new apartments is built with goals faster than last year.
Average Rent and Change in Average Rent every month
According to the survey, the average monthly rent in the GTA increased in most parishes and former parishes, with Toronto (up 4.7 per cent to $ 2,167), Etobicoke (up 4.6 per cent to $ 2,105), and Oshawa (up 4.3% to $1,839). Followed behind by Markham (up 2.4% to $2,101), Mississauga (up 1.8% to $2,046), Brampton (up 1.2% to $2,013), Scarborough (up 0.8% to $1,871), and North York (up 0.4% to $1,923).
On the other hand, several regions continued to see a monthly decline including Vaughan is down 1.4% to $ 2,176), York is down 2% to $1,884, East York is down 1.2 per cent to $1,769, and Richmond Hill is down 0.1 per cent to $2,506.
"The rental market saw a new blossom after a reduction in unprecedented leases during the pandemic, with rent rising faster than falling," said Ben Myers, head of Bullpen Research & Consulting.
"Toronto's average rent in terms of demand has climbed by 4.7 per cent. In the last month, According to Myers, Torontorentals.com has reduced the number of active lists since a rental property has filled in rapidly.
Average Rent by Bedroom Type for All Built Forms
According to the report, the unit with four or more bedrooms saw the biggest increase in the market in 2021. They were low at $ 3,160 to $ 3,518 in July, an increase of 11.3%. The one-bedroom unit saw the smallest increase in July, from $ 1,763 to $ 1,773, up less than 1%, a sign that the tenant was still looking for more space, and the one-bedroom unit is not in high demand as it was before the pandemic period.
Interestingly, many larger units outside the city centre booked quickly, showing that some tenants did not expect to return to the full-time office shortly. As the county, province, and cities continue on their way to normal, the rental rates in GTA are expected to continue to rise through the second half of 2021, with a larger lease unit lead.
Ainsley could typically be found exploring Toronto, cooking, working at home, or hanging out with his cat, Jerry Seinfeld, when he wasn't writing about real estate, local developments, and magnificent residences that he wanted to live in.
Unit mix by type bedroom in the GTA
One factor that contributes to a lower rental rate in GTA is a high demand for large properties. These units are hired quickly, and the number of houses three, four, and five bedrooms for rent is far lower until now in 2021 compared to 2020 and 2019.
The larger unit market segment continued to shrink in 2021, with three-bedroom units accounting for 9% of the market and four-bedroom units accounting for 1%. The five-bedroom units available in 2021 were made less than 1% of the total. Overall, these large units produced only 10% of the total, half of the market share of 2019.
Rendering Courtesy of normli.global