Rising Rental Costs: Toronto and Beyond
In the world of rental woes, Toronto students searching for a new apartment this school year were met with a rather unpleasant surprise – rental prices have skyrocketed by over 10 percent compared to last year in the city.
Toronto’s Soaring Rental Rates
According to a recent report from rentals.ca, the average monthly rent for a one-bedroom apartment in Toronto now stands at a jaw-dropping $2,620 as of August, marking a staggering 10.5 percent increase from August 2022. Meanwhile, the cost of an average two-bedroom apartment has also surged, settling at $3,413 per month, up 7.1 percent from just a year ago.
GTA’s Expanding Rental Market
But the rental frenzy isn’t limited to Toronto alone; it’s spreading across the GTA like wildfire. In Brampton, for instance, the price of a one-bedroom apartment has experienced a jaw-dropping 29 percent surge from last year, reaching a new high at $2,274 per month. Two-bedroom apartments in Brampton have also seen a substantial 25.7 percent increase, now commanding a monthly rent of $2,650.
Mississauga is not exempt from this rental rollercoaster either, as one-bedroom apartments have witnessed a 15.3 percent surge, with prices now averaging at $2,379. The cost of a two-bedroom apartment in the city has surged by 18.4 percent, climbing to $2,872.
Vancouver: The Pinnacle of High Rents
Nationally, Vancouver maintains its reputation as the most expensive rental market, with one-bedroom apartments just shy of $3,000, settling at $2,988 per month, and two-bedroom units demanding a whopping $3,879.
According to the report, rental prices across Canada have surged by 1.8 percent monthly and an eye-popping 9.6 percent annually, culminating in a record high average rent of $2,117 in August.
Interestingly, while Toronto and Vancouver remain at the top of the rental cost ladder, month-over-month rent hikes in both cities have actually been relatively modest in August. Toronto experienced an uptick of around 1.2 percent for one and two-bedroom apartments compared to July, while Vancouver saw a slight 0.9 percent decrease in rental costs for similar housing types during the same period.
The Rental Market’s Three-Month Surge
Notably, those in search of roommates are feeling the pinch as well. In Ontario, the average monthly rent for a roommate has surged to $1,040, marking a $73 increase from the previous year. In Toronto, the average monthly rate for roommates now stands at a hefty $1,302. While this may seem steep, it’s still relatively more affordable than Vancouver, where the average asking price for a roommate is an eye-watering $1,773 per month.
The report further highlights that asking rents have surged by over $100 nationally over the past three months, across all housing types.
“Over the last three-month period between May and August, asking rents in Canada have increased by 5.1%, or by an average of $103 per month,” states the report.
This rental frenzy, despite a surge in apartment completions over the past year, can be attributed to Canada’s record-high population growth and the significant decline in homeownership affordability.
Government Initiatives in Response
This latest report coincides with the ongoing housing crisis, both at the local and federal levels. Prime Minister Justin Trudeau recently announced a substantial $74 million allocation from the federal Housing Accelerator Fund to construct an additional 2,000 high-density homes in London over the next three years. London stands as the inaugural city to benefit from the fund, with the federal government aspiring to fast-track the construction of at least 100,000 new homes nationwide. However, the funding agreements require municipalities to abandon exclusionary zoning practices and actively promote apartment construction around public transit.
At the provincial level, the government has also made housing a top priority, committing to the construction of 1.5 million homes across Ontario within the next decade.
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