While the country’s housing market has seen a good year since Q3 of 2020, the rental values witnessed a drastic dip. For the GTA, the average drop in rental values across all property types was around 17% in Q1 of 2021 compared to Q1 of 2020.
This brief report shares the rental rate trends (all property types: basement apartments, rental apartments, condo apartments, townhouses, and single-family homes) from January 2019 to January 2021.
Across all property types, the GTA’s average rent in Jan’21 dropped to $1,993 per month, showing a declining rental rate over the year (Jan’20) of around 17%. While when comparing the average rent of Jan’19 and Jan’20, there was an increase of 6.63% - average rent in Jan’19 was $2,261 while it was $2,411 in Jan’20.
Based on the number of bedrooms in a house, the average rent also witnessed a drop across all property types except for a unit with 4 bedrooms.
1-bedroom units witnessed the largest dip of almost 16%, followed by studio apartments and 2-bedroom units with a dip of nearly 15%.
In Q1’21 (January 2021), the average rent for a studio apartment dropped to $1,477 per month against $1,733 for Q1’20 - a 15% drop. Whereas for a one-bedroom unit, the average rent went from $2,106 (Q1’20) to $1,763 (Q1’21) per month - a 16% drop over the year.
A four-bedroom unit was the only type of house with an upward trend when the rent for Q1’21 was $3,130 compared to $2,983 in Q1’20 per month, showing a rise of nearly 5% over the year.
According to Toronto Rentals, since 2020, there has been a declining trend in the average home rent across the region.
The data shared here shows a comparison of rental rates based on property types.
While every house type witnessed a dip in the rental amount, condos saw the largest dip. Comparing YoY, the average rent for a condo dropped from $2,523 in Q1’20 to $2,055 in Q1’21 - a decline of 19%.
Next in the line were single-family homes with an average rent dropping from $2,854 in Q1’20 to $2,403 in Q1’21, showing a drop of 16%.
Whereas for rental apartments, the decline was the least (among the three categories), i.e., 11% - dropping from $2,130 in Q1’20 to $1,895 in Q1’21.
Toronto witnessed the largest drop here when the average rent dropped from $2,528 (Jan’20) to $2,000 (Jan’21), showing a drop of nearly 21%. The least affected area was Scarborough, with a drop of nearly 5%, recording a decline of average rent from $1,928 (Jan’20) to $1,832 (Jan’21).
The average rental rate continues a dropping trend. Taking this advantage, many are heading towards more spacious accommodations, while some are even moving out of the big cities.
On the other hand, the condo market is expected to rise this year. And when this happens, both the prices and rental rates would start increasing.
If you plan to invest in condo apartments, this is the best time to move and get hefty results later.