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Toronto Rents Decline for Second Quarter as Condo Supply Surges

Condo completions have driven average one-bedroom rents down 7.1 per cent year over year to $2,302.

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Condo towers dot the Toronto skyline Jan. 28, 2021. THE CANADIAN PRESS/Frank Gunn
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Overview

  • Average rents for one- and two-bedroom units in Toronto fell for a second consecutive quarter, with one-bedrooms down 7.1% year over year to $2,302 and two-bedrooms off 10.7% to $2,933.
  • A surge of new condo completions has added tens of thousands of rental units, driving supply up and achieving a 65% absorption rate in the first quarter.
  • Tenants have leveraged increased supply to negotiate rent reductions and secure lease incentives as landlords seek to avoid vacancies.
  • Toronto has slipped from the second-most expensive rental market in Canada to the fifth-most expensive as prices continue to soften.
  • Rental prices have declined across Ontario, with Oshawa now the cheapest GTA location for unfurnished one-bedrooms at $1,774 and other regional markets also posting steep drops.