If you’ve been thinking about finding a new condo in Toronto, now is definitely a great time to start looking; rents continue to hit another record month of declines, according to the latest rent report from PadMapper.
Though, despite the declines, Toronto still remains the most expensive market, with one-bedroom rent dropping 3.7% to $2,100 last month, while two-bedrooms dipped 1.9% to $2,650.
READ: Average Rental Prices Have Dropped in These Toronto Neighbourhoods
As for our neighbours to the west, Vancouver continued to see falling prices for both one and two-bedrooms, with one-bedroom rent dipping 0.5% to $2,060, while two-bedrooms dropped 2.4% to $2,800. On a year-over-year basis, one and two-bedroom prices have fallen 6.4% and 9.4%, respectively.
Meanwhile, neighbouring cities continued to see large year-over-year rental growth rates.
"Barrie's one-bedroom rent was up 5.1% last month, which was the largest monthly rental growth rate in the nation, and 13.1% year-over-year. Oshawa’s rents for both bedroom types have climbed 15% since this time last year, and Hamilton’s one-bedroom rent has jumped 9.8% year-over-year," PadMapper analyst Crystal Chen told Toronto Storeys.
However, if you’re looking for the most affordable option, you may want to consider St. John’s, NL, where rent for a one-bedroom has dropped 1.2% to $840 and two-bedroom rent has fallen 1.2% to $890.
Overall, seven cities were on an upward trajectory last month, seven downward, and 10 remained flat.
Chen says the continued declines indicate that the pandemic has pushed demand for rentals away from big, pricy cities and toward more affordable, satellite ones that offer renters more space without being too far of a commute to the main cities.
"Both Toronto and Vancouver, the two priciest cities in Canada, experienced another month of declining prices. Toronto one and two-bedroom rents have fallen 8.7% and 7%, respectively, since this time last year. Vancouver rents have seen a similar downturn. Meanwhile, neighbouring markets to both of these cities saw rents continue to spike, especially in Toronto's adjacent cities as they all saw rent jumps in the double digits," says Chen.
Meanwhile, for Vancouver, Burnaby’s one-bedroom rent has jumped 8.9% year-over-year and Abbotsford’s rents for both bedroom types are up over 15%, Chen added.
"For the coming months, I expect to see Toronto and Vancouver rents remain in the negatives year-over-year as renters shift their apartment preferences given the pandemic."
