Rental rates down 17 per cent in the GTA and more than 10 per cent in Mississauga
If you want to start renting in Mississauga, now might be a good time to start apartment hunting.
According to a recent TorontoRentals.com and Bullpen Research & Consulting Toronto GTA rent report, the average asking monthly rent in the GTA (all property types) declined for the 14th straight month, down more than 17 per cent year-over-year in January to $1,993.
The report says the amount is down almost 12 per cent from January 2019.
In Mississauga, where rental rates are generally higher, average rents for smaller units were down 11 per cent to $1,723.
According to TorontoRentals.com and Bullpen Research & Consulting's recent National Rent Report (released before the GTA rent report), Mississauga finished third on the list of more than 30 cities for average monthly rent in January for a one-bedroom home at $1,779 and sixth for average monthly rent for a two-bedroom at $2,097.
The Toronto GTA rent report says that with many tenants now working from home, the smallest apartments in Toronto and the GTA are less desirable, and have experienced significant rent declines as a result.
According to the report, the average rent decreased nearly 21 per cent year-over-year in metropolitan Toronto for condo rentals and apartments to $2,000. Etobicoke had the next largest decline in average monthly rental rates for condo rentals and apartments, falling 18 per cent to $1,926. York and North York monthly rents were down 15.7 per cent and 15 per cent respectively.
Year-over-year, the average monthly rent dipped by 16 per cent to $1,763 per month for one-bedroom units in the GTA, and average monthly rental rates dropped by 15 per cent year-over-year for a two-bedroom home.
"The smallest units in the market, ranging from 400 square feet to 600 square feet have really seen rents decline during the pandemic, falling 23 per cent annually in Toronto," said Ben Myers, president of Bullpen Research & Consulting, in the report.
"With the second COVID lockdown still underway, a return to downtown offices is still likely a ways off, and the downward trend is expected to continue."
The report says Scarborough is faring well, with prices for condo rentals and apartments increasing by 20 per cent year-over-year in January 2021.
Across Toronto and the GTA, the average monthly rent for a studio apartment was $1,477, down almost 15 per cent year over year.
The average rent for a three-bedroom unit declined by 9 per cent compared to the previous year.
As for what to expect going forward, the report suggests that that the market could remain sluggish for a little longer due to the slower-than-expected (to start, at least) vaccine roll-out and ongoing strict public health measures (Toronto, Mississauga and Brampton were only released from a provincially-imposed stay-at-home order on March 8 and will remain in lockdown for at least two more weeks).
The report also points out that fewer than 500 condominium rentals and apartments were completed in January, as per the Canada Mortgage and Housing Corporation. That said, scheduled occupancy dates by developers indicate that more supply will hit the market in 2021, which could drive prices down further if supply continues to outpace demand.
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