The COVID-19 pandemic has started to negatively impact asking rents in the Greater Toronto Area (GTA) as outlined in the Rentals.ca May National Rent Report.
In this Toronto GTA May Rent Report using TorontoRentals.com data, which shares listings with its sister website Rentals.ca, we take a closer look at the GTA market and the pockets of rental activity.
Condominium apartment rental rates declined at many projects in the Greater Toronto Area from 2019 to the first four months of this year, according to a deeper dive into the May data in the Toronto May Rent Report from TorontoRentals.com and Bullpen Research & Consulting.
All rental rates are determined by supply and demand. If the population declines, and the need for housing in the core of Toronto declines, the glut of supply in the condo market will naturally decline the rent prices. But only temporarily. – Stephen Young
Also, Toronto rents declined 5 per cent both monthly and annually in April. Part of the decline can be attributed to an increase in former short-term rentals hitting the market, which added a major infusion of supply in a market weakened by the pandemic and the economic and health uncertainties around moving.
Rental demand has plummeted in Toronto as tenants stay in their current accommodations for fear of exposing themselves to COVID-19. And, unemployment has soared with the pandemic lockdown, reducing move-up, move-down movement, as well as creating new households from recent graduates, students and immigrants.
Quotes: “Developments completed after November 2018 are not subject to rent control in Ontario, and investors in those buildings are more likely to decrease their asking rents short-term, knowing they can raise them to the market rate when the economy and real estate recovers,” said Matt Danison, CEO of TorontoRentals.com
“This pandemic could have a real impact on the supply of new housing in the GTA in the long term, as missed payments by tenants and lower rents could have many investors rethinking future pre-construction condo purchases, said Ben Myers, president of Bullpen Research & Consulting.