Mississauga has the highest rent increase for condos in the GTA
Published July 26, 2022 at 12:04 pm
It’s getting more difficult to find an inexpensive place to live in Mississauga.
Mississauga had the highest rent increase for condos in the GTA, with rents rising to $2,820 per month, a 25.2 per cent increase from the same time last year. This is higher than average rents in Toronto, according to the latest rent report from TorontoRentals.com.
However, it is important to note Mississauga rents are higher than Toronto due to the larger average unit sizes, the report states.
The rent per-square-foot in old (pre-amalgamation) Toronto is $3.86, compared to $3.15 in Mississauga.
Chart via TorontoRentals.com
Videos
Still, renters are paying more compared 2021.
The average rent per-square-foot for condo apartments in Mississauga increased from $2.78 in June 2021 to $3.15 in June 2022 – an annual increase of 13 per cent.
And rental apartments jumped from $2.32 per-square-foot in June 2021 to $2.51 per-square-foot in June 2022 — an annual increase of 8 per cent.
The report notes the average rent per-square-foot for rental apartments has not moved much throughout 2022 year to date, and was $2.51 in June 2022 (same as January 2022) in Mississauga.
Rents are up across the GTA with monthly asking rent for all properties increasing 19 per cent annually to $2,403 per month in June 2022, the report states.
People will see higher prices for smaller and medium-sized units (studio, one-bedroom, and two-bedroom units).
Toronto Rentals blames the increase on interest rate hikes, which are stopping people from buying a new home. This has led to less rentals on the market — listings on TorontoRentals.com are down 28 per cent from last year’s summer peak levels.
“Reduced ownership demand due to higher rates typically causes house prices to decline and further disincentivizes buyers,” the report states.
For all property types, the average rent is higher in June 2022 than in June 2021, with the lowest annual rent inflation for rental apartments at 12 per cent, and the highest for condo apartments at 23 per cent. The report notes that in June 2021, condo apartments experienced the largest annual decline in monthly rental rate at -7 per cent.
The average monthly rental rate for a single-family unit in June 2022 increased 21 per cent to $3,389 per month. Townhouse units went up 16 per cent to $3,085 per month. And even rent for basement apartments is surging, rising by 18 per cent year over year to $1,815 per month.
Chart via TorontoRentals.com
Overall, rents in the GTA seem to be returning to pre-pandemic levels as indicated by the 10th percentile data. This data shows what is happening with the least expensive properties in the market. Those properties peak at $1,715 per month in late 2019, up 22 per cent from the start of that year. The 10th percentile rents then dropped 17 per cent to $1,427 in June of last year, and now climbed to $1,550 in June 2022 (+9 per cent annually).
Rents are expected to continue to increase due as supply chain issues, labour stoppages, and restrictive planning policies that have reduced new builds in Toronto and the suburbs.
“We expect GTA rents to continue to grow for the foreseeable future, but at a slower monthly rate in comparison to the spike over the last two months,” the report states.
insauga's Editorial Standards and Policies advertising