The COVID-19 pandemic keeps on creating chaos on Toronto’s residential rental market, for everybody other than landlords.
A recently delivered report from Padmapper shows that the average cost of a one-room apartment in Toronto is currently just $1,770 per month.
This means a 23 percent year-over-year decline, and the reversal of four years of outstanding rent increase in Canada’s biggest city over less than 12 months.
At the end of the day, it’s a huge drop.
The last time Toronto one-room lease was as low as it is now showed in the report, was in February 2017, when it was at $1,700, noted Padmapper in an announcement declaring its February 2021 report on Monday.
It appears to be the consistent lease value decreases from tenant movement out of Canada’s presently second most costly rental market has not halted, even as COVID-19 vaccines have started to roll out.
Individuals leaving their small condos looking for bigger, less expensive spaces from which to live and work from home aren’t the only drivers of this pattern. Border limitations have additionally provoked a mass sell-off of short-term rental units (also known as Airbnbs.)
A surge in new purpose-built rental units has furthermore increased supply on the market, contributing to a 50-year high vacancy rate of 5.7 per cent at the end of 2020.
While still not modest by any means, $1,770 is the lowest average one-room lease cost posted by Toronto in four years. Two-bedroom units are down also, by 5.3 percent month-over-month and by a stunning 21.5 percent year-over-year.
The median cost of a two-bedroom unit in Toronto is $2,340 as of February 2021, as per Padmapper, which investigates countless listings every month to tracks lease costs across Canada’s 24 biggest urban areas.
Vancouver is presently the most-costly rental market in the country after surpassing Toronto in December of 2020.
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