Let’s dive into rent in 2024, Toronto experienced a 1.3 percent decline in average asking rents in February, contrasting with the national trend of a more than 10 percent increase in rents, according to a report by Rentals.ca and Urbanation.
The average asking rent for apartments in Toronto decreased by 1.3 percent compared to the previous year, aligning with a shift seen in Canada’s more expensive cities as renters opted for more affordable markets. This trend contributed to a 10.5 percent increase in prices nationwide, with the average rental listing in Canada reaching $2,193 in February, the fastest yearly growth since September 2023.
The slowdown in Toronto’s rental market is attributed partly to a temporary rise in supply from condo and rental projects initiated a few years ago when interest rates were at record lows. Additionally, waning demand from renters facing record-high housing and living expenses has led them to seek more affordable markets, including suburbs or cities outside of Ontario such as Calgary and Edmonton.
Despite the overall decline in Toronto’s rental prices, demand for purpose-built rentals remains robust, particularly for smaller units and shared accommodations. The average asking price for roommate rentals increased to $1,280 per month in February, up from $1,225 in the same month the previous year. Studio apartments were the only housing type to report annual rent growth, rising 3.4 percent to $2,028, while one-bedroom units remained flat at $2,514, two-bedroom units fell 0.4 percent to $3,312, and three-bedroom units dropped 0.3 percent to $3,833.
Looking at rent in 2024, the rental market is expected to see a decline in supply as construction slows due to interest rate hikes making projects economically unfeasible. Demand, however, is anticipated to remain strong, suggesting that the current slowdown in rental prices in Toronto may be a short-term reprieve for renters.