If you think $2,000 in monthly rent will get you far in the GTA, think again.
A new report from Urbanation shows that renting a condo in the region will cost you, on average, anywhere from $2,124 for a studio unit to $3,125 for a two-bedroom. In addition, the report shows that rental rates are inflating the most drastically for smaller units as affordability challenges continue to mount and renters flock to cost-effective accommodations. Rents for units under 500 sq. ft, for example, are up 21% year over year.
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But here’s the kicker: the only category of rentals to average less than $2,000 per month are micro-units, which come in at 350 sq. ft. and under. Urbanation puts the average monthly rate for one of these glorified shoeboxes at $1,993 -- but Amrit Walia, Sales Representative with Royal LePage Signature Realty, says that you’d be hard-pressed to find a unit for under $2,000 at all.
“So, micro-units, they weren’t in demand during COVID. Now, you aren't seeing those types of units being listed at all,” he says. Of all the available rentals in his network, he says there’s only one micro-unit renting for $1,900 at the moment. A few years ago, in the spring of 2021, there were around 900 comparable units renting at that under-$2,000 price point.
In other words, even if you’re willing to sacrifice on square footage, affordable inventory is hard to come by. Moreover, searching for a micro-unit is an endeavour in itself. Walia points out that most listing sites don’t let you filter below 499 sq. ft.
By now, the factors driving rental prices in the GTA are pretty plain. Cost of living has exploded, and with interest rates being where they are, even those who are motivated to own property can’t swing it right now. On top of that, immigration is putting extra pressure on the region’s rental market, which is chronically undersupplied.
Given those mounting pressures, if a client comes to him with a budget of $1,800, for example, Walia more often than not has to turn them away. “I have to tell them to go on Facebook Marketplace and look for a sublet option. It may be a temporary accommodation, but you might get a deal for about that price point.”
Or better yet, suck it up and rent with a roommate -- at least for a few years, while you save up for a better rental or a downpayment on a house or condo, suggests Walia. But multiple bedroom units are “flying off the shelf” as well, he adds. “There is demand for those because people just can’t afford to live by themselves, even if they want to.”
