The average property rental price in the Greater Toronto Area in May saw the largest single-month hike in the past three years, as potential homebuyers back away from rising interest rates, reducing rental supply, a recent report says.
The report, co-authored by Bullpen Research & Consulting and TorontoRentals.com, shows the average monthly rental rate in the GTA surged by 5.7 percent in May. Average rent also saw a 16.5 percent year-over-year increase, from $1,998 in May 2021 to $2,327 in May 2022, which is fast approaching the pre-COVID-19 level of $2,365 in May 2019.
“In a quest to fight off inflation, central banks across the world are increasing interest rates, and as a consequence, in the GTA, resale house prices are softening. In the short-term that is dissuading some would-be buyers from exiting the rental market, reducing rental supply,” the report said….