If you've been thinking about finding a new condo in Toronto, now is definitely a great time to start looking as 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 3.6% to $2,700.
But it's not just Canada's largest city that's experiencing declines for both unit sizes, as Vancouver’s one-bedroom rent has fallen 5.9% and two-bedroom rent has dropped even further into the double digits with a 10.3% year-over-year dip.
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 $850 and two-bedroom rent has fallen 1.1% to $900.
Overall, nine cities were on an upward trajectory last month, nine were downward, while six remained flat.
RENT: Average 1-Bedroom Rent in Toronto Has Dropped Over $250 Since January
As Canada begins to reopen and people start thinking about moving again, more cities than in previous months started to show increases in monthly rent changes.
PadMapper analyst Crystal Chen told Toronto Storeys that demand for rentals usually picks up heading into summer, but now the opposite is true for Toronto and Vancouver.
"As more and more companies move into remote work, many renters don’t want to pay the big city price tag when they are unable to use the amenities and are looking for more affordable options outside of large, metropolitan areas," said Chen.
"You can see this trend highlighted in the large rental growth rates in neighbouring cities to Toronto like Barrie (one-beds up 7.6% year-over-year), Oshawa (up 15%), and Hamilton (up 10.4%)," Chen explained.
As people continue to spend more time than ever at home in addition to the many renters that were negatively financially impacted by the pandemic, space and affordability have become very important in terms of housing.
For example, instead of paying expensive rents for a small apartment in the city, Chen says renters are now prioritizing more affordable homes that can get them an extra room for an office or even a yard.
"I think companies' openness to remote work is here to stay so though not everyone will run to the suburbs when a vaccine is ready, a significant portion will stay and that, in turn, will hopefully make Toronto rents more affordable overall in the future."
PadMapper July 2020
You can find the full report here.
