What's the best value – getting a studio solo or sharing a 2-bedroom? How much does it cost to rent a 1-bedroom place downtown? A 2-bedroom in Mississauga? Our bedroom report is a lens into how much you’ll spend where, what's in demand, and the affordable (and not so affordable) pockets of the city – info that will help you make a smart buying, selling or renting decision.
One thing to keep in mind when you’re looking at the reports: the numbers reflect stats for April, May and June 2020 – that’s a quarter that has seen low lows (April and May) and record-breaking highs (June) all of which, in the resale stats, balance out to some pretty flat numbers. But if you look at June numbers on their own, you'll see demand and prices have made their way back to pre-COVID levels, with available listings sitting at a historic low.
Related info: Toronto market outlook reports
Related info: Mississauga market outlook reports
The strength of June's resale market can be attributed in part to pent-up demand: the traditionally busy spring market didn’t happen, but buyers and sellers are making up for it now. Factoring in the two slow months and our recent red-hot June, year-over-year prices per square foot are still up. In the 416, 1-bedrooms are up 6% and 2-bedrooms are up 2.9%
Related info: York Region market outlook reports
Rentals on the other hand, are way down.
There's a ton of supply and much less demand – units are sitting empty and prices are falling. There are a few reasons for that shift, all of them (unsurprisingly) COVID-related:
Industries and demographics that are more likely to be renters have been hit harder than most by pandemic-related job losses.
Immigration has slowed down to a trickle. Many newcomers rent when first arriving in Toronto, but with border closures, immigration has come to a standstill, putting a big dent in demand.
Because of the drop in tourism and changing rules around short-term rentals, hundreds of Airbnb units have hit the long-term rental market, adding even more to the supply glut, even as demand continues to fall.
College and university students are staying home this fall. That’s another huge chunk of the rental market. With schools going virtual for the fall semester and possibly beyond, that opens up a huge number of units across the GTA.
With high supply and low demand come falling prices: average price for all unit sizes across the GTA is uniformly down. If you want to take a deeper dive into the numbers, this TD economic report takes a close look at supply and demand in the Toronto housing market and what things could look like to the end of 2020 and beyond.
Want to talk to a Condo Pro about what the numbers mean to your plans to buy, sell or rent? Get in touch today.