Toronto Rent Prices Continue to Decline in June, But Will This Last?
Rent prices in Toronto are down again – something we thought would have been impossible pre-COVID times. The cost of rent dipped from April to May by 0.3%, which dropped the price of rent in the City of Toronto from $2387 to $2380 in May. And then an even steeper decline of 3.9% from May to June. However, the party is likely to stop there. Rent rates in the City of Toronto and surrounding municipalities expect to see rising rent prices to halt once the lockdown is over. Keep reading to learn year-over-year rental rates and insights from the TorontoRentals.com June 2020 Toronto GTA Rent Report.
Not all cities in the GTA have seen rent rates drop
Rent prices are still increasing in Brampton (3.5% increase), Richmond Hill (2.8% increase), and Milton (0.3%) from May 2019. However, the average cost of rent decreased year-over-year in Mississauga, Oakville, North York, Markham. And according to rentals.ca, rent rates across the nation dropped 1.4% monthly and 5.4% year-over-year.
Once the eviction ban lifts – many tenants will be on their way out, and landlords can raise the rent again
As soon as the eviction ban lifts, landlords will be able to kick out non-paying tenants and raise rent prices again. Thus, rent costs in Toronto will start to rise. However, some lucky tenants locked into a cheap lease this spring, and they won’t be seeing any price gouging. The evictions will lead to an increase in supply and are ready for the demand for late summer or fall renters. Hopefully, tenants who have been struggling financially since the pandemic hit, will find a way to pay for their rent and will be able to stay in their home.
Rental demand will increase as lockdown ends, and the border opens up
Individuals will start looking for places to rent independently after living in confined spaces with family and roommates during COVID. New grads will be starting their careers and looking for a place to rent in the Greater Toronto area. And as soon as the US border reopens, contractor workers, immigrants, temporary residents, and international students will need a place to stay. Therefore, increasing the demand for rental units in the City of Toronto and surrounding areas.
March, April May, and June provided great rent relief for new tenants
Before the rent dropped in March, prices were rising year-over-year every month. The lower spring and summer prices have made renting in downtown Toronto somewhat affordable. However, nine areas in the Greater Toronto area placed in the top 10 for the most expensive cities to rent a one-bedroom apartment in Canada. Rent may have dropped a bit in the GTA, but that doesn’t mean it’s still not an arm and a leg to rent a place here.