Experts’ Forecast: GTA Rental Market Trends for 2022

Thinking of delving into the GTA condo market and renting a new home anytime soon? Before doing so, it might be a good idea to catch up on how the rental market itself is doing. To help you make a more informed decision in your search, we’ve consulted with reports and findings to compile a trend forecast for 2022. Let’s explore it together in more detail!

Almost 50% Fewer Condo Units for Rent Compared to 2020

Through findings of the Toronto Regional Real Estate Board, there was a considerable decline in condo rentals late last year compared to the same timeframe in 2020 – a drop of almost 14 percent. They indicate that the primary cause was a whopping 48.9 percent fewer units available to rent in the Greater Toronto Area compared to the fourth quarter of the previous year. That’s a massive decrease! 

Rents are Increasing

With fewer units available to rent, landlords often realize that they are going to more easily lease the ones that they do have. The competition is fierce between owners due to this constrained supply, which means you’ll be a bit more out of pocket if you sign a lease today compared to last year. For example, by the end of 2021, the average rent for a one-bedroom condo in Toronto has increased by 13.7 percent since late 2020. Two-bedroom units are now, on average, up by 12.6 percent. The TRREB predicts that this trend will continue, and we’re inclined to agree.

How Much will Toronto Rents Go Up by This Year?

The statistics mentioned earlier help to inform the forecast for this year, as noted above. At the moment, this is primarily a seller’s market, as evidenced by the RE/MAX Toronto Housing Market Outlook that forecasts a 10 percent increase in home prices this year. Whether you intend to rent or buy, the prices are only set to increase – we’re seeing a predicted spike of around 11 percent on average for rents in the GTA by the end of 2022. 

What Does this Mean for Future Renters?

If you’re looking for a condo or apartment to rent in the GTA – even elsewhere, for that matter – then it appears to be better to sign the lease sooner rather than later. Factors contributing to the increases include economic stresses, the ongoing pandemic, the fact that most folks who wanted to leave the GTA have already done so, and ample pent-up demand for rental units still available. We can’t see the rates going anywhere but up for the foreseeable future. 

How Can I Be Prepared so I Don’t Miss Out on a Unit?

Since the market is highly competitive right now, there’s always a chance of not getting the unit that you like most. To avoid missing a great property in a convenient location at a price that works for you – and before it increases further – there are several steps you can take care of in advance. First, ensure you have the funds available to comfortably sign up for the lease, rent and utilities, moving day costs, and other expenses. 

We also recommend preparing all your documentation so that it’s organized before filling out a rent application and/or meeting with the landlord, such as your bank statements, credit score, ID, and otherwise. Make the process as smooth and hassle-free for the landlord as possible to determine whether you’re an ideal candidate for the unit, especially when it comes to background checks, references, and/or financial vetting. Of course, be certain to budget well in advance for any costs to come. Determining what it costs to cover rent, groceries, utilities, internet, and all other bills as a total each month can paint a clearer financial picture. 

Need a hand with determining which rental properties are ideally suited to your needs and budget? We’re happy to help at Medallion Capital Group, including with tenant insurance solutions. Feel free to get in touch with us today!