The rental market is going strong, and the lull we saw over the pandemic is definitely in the rearview.
“It’s not as easy for renters anymore,” says Property.ca Broker Julian Kashani. “While an overheated rental market is great for landlords, renters are getting hit hard, especially students and youth with lower budgets.”
If you’re on the hunt for a new place to live, or you’re thinking about buying an investment unit to rent out, here are 8 things to keep in mind:
1. Demand is up and supply is down.
People want to live in the city again. Students are back in school, immigration has restarted, the hospitality industry is fully back in play, and people who moved in with their parents or left town for lower rents are back in the city. These renter demographics are driving the market, and it’s gotten pretty competitive out there. “Everything is getting rented,” says Julian. “There are more tenants than landlords right now, and available units are getting snapped up fast.”
2. Prices haven’t hit their pre-pandemic peak…yet.
Rentals are still a better value than they were before COVID – there are good opportunities across the city. In downtown Toronto, average rent for a one-bedroom unit is $2,044, and for a two-bedroom, it’s $2,778. Across the GTA, the average for a one-bedroom is $1,776. Rents are holding steady for now, though. There was almost no increase in the average rental price from February to March.
3. Bidding wars for rentals are back.
Renters may face some stiff competition for nice units, so be prepared to offer a bit more than the list price. But don’t worry too much about spiraling prices: Julian says the typical offer is typically around $25 to $100 more a month, sometimes with a quicker closing.
4. Units with outdoor space are in hot demand. After a long pandemic, people want balconies and easy access to outdoor space.
5. People want condos with WFH areas.
While some employers are going back to the office, many are doing hybrid models or have embraced remote work wholeheartedly. Work from home is here to stay, and rentals with a quiet place to work are very popular.
6. Amenities are important.
Lounges where you can go and read or relax, rooftop gardens, pet-friendly buildings – those are all more important to renters than they ever have been before (hello, pandemic puppies!)
7. Renters – be ready to move fast on a unit you like.
You won’t have time to think it over or get your credit report done. Have all your documents ready to go before you start looking, and you’ll be able to make quick decisions.
8. It pays to be open to alternative locations.
You might be surprised at some areas that are a little further out, like Yonge and Sheppard or even Don Mills and Sheppard – they’re super-popular with renters because you get more square footage for less, but you’re still right on the subway line for an easy commute. And if you’re looking for the best values, Brampton comes in as the least expensive option, with an average one-bedroom rate of $1,623.
Looking to find a great rental – or an investment property you can rent out? Start your search today!