The cost to rent an apartment in Toronto spiked by 24% in August when compared to last year, new data reveals.
According to Rentals.ca’s National Rent Report, Toronto placed second on the list of 35 cities that saw huge surges in rental prices.
Renters were expected to pay an average of $2,649 per month for a rental unit. Costs for one-bedroom apartments reached $2,329 last month and two-bedrooms reported a staggering average price of $3,266.
Condo rental reached $2,945, nearly $1,000 more than the national average of $2,053.
“The average rent for all property types across Canada in August 2022 was $1,959 per month, representing an annual increase of 11.1%. The average rent is up 1.3% monthly, and 16.8% from the recent market low of $1,676 per month in April 2021,” wrote the author of the report and president of Bullpen Research Ben Myers.
Other GTA municipalities including Mississauga and Brampton were also affected with each city reporting an average rental of $2,348 and $2,107 respectively.
“With several economists calling for an extended ownership housing market correction, demand has shifted dramatically to the rental market, which is significantly under-supplied in many major Canadian municipalities,” said Myers.
The rental situation in Toronto has forced some university students this year to seek housing in homeless shelters.
A report by Bloomberg from August revealed that homeless shelters were reporting an increase in students seeking their services.
Covenant House Toronto youth shelter executive Mark Aston said that students made up one-third of his shelter’s inhabitants.
“It’s very much a trend that has mirrored the affordability issues with rental housing in Toronto,” said Aston.
“I was astounded for a whole number of reasons. One, that somebody could actually have that much turmoil going on in their life, that much instability, and yet continue to perform and stay in a really high-demand course.”
