Toronto’s rental market is heating up, with the average rent for an apartment up more than 10 per cent this year to a record $1.27 per square foot.
With a population of more than 11 million people, Toronto’s average rent rose nearly 30 per cent last year, according to the Toronto Real Estate Board.
The average rent of a condo is now $1 million per unit.
The average price of a detached home rose 5.7 per cent year over year, the agency said.
In 2019, condo sales were up by a quarter in the Greater Toronto Area and the number of condo units sold in the city was up by more than half.
There were more condo units available than in any year since 2011, according the agency.
The total number of condominium units in the Toronto area rose by 4 per cent, compared to the same time last year.
The number of condos in Toronto rose by almost 30 per the number that were sold, the most since 2011.
In 2019, the average cost of a standard detached home was $1-million, down from $1 billion in 2019, but up from $766 million in 2020.
“While we’re still experiencing a period of affordability for those renting, this trend will likely continue,” said the agency in a release.
“For those renting a two- or three-bedroom home, the rate of appreciation is already well below the average of 6 per cent per year for the past five years.”
The average annual rate of rent appreciation in Toronto is 3.8 per cent annually, and the average annual rent increase is more than 5 per cent,” the agency added.
A one-bedroom condo unit in Toronto can now be listed for $1-$1.5 million.
Toronto rents are expected to increase by nearly 20 per cent next year, with average prices climbing by more then 5 per per cent in 2019.
Toronto’s median price is now up by 5.8% over the past year.
Toronto rents are now up 14.3 per cent over the last year as of September.
BMO Capital Markets forecasts that condo prices will increase by about 3.6 per cent to $1 per square metre in 2019 for a home that is currently listed for the same price.
That’s up from the 3.1 per cent average annual increase over the same period last year and up from 2.4 per cent for the previous year.
Prices are forecast to increase for detached homes by 6.4 to $8.4 million.
For a one-bed condo unit, the price is forecast to rise by more that 10 per percent to $2.8 million.
In 2020, the median price for a one bedroom condo unit is $1.,200, up from just $907 last year at this time.
The median price of one- and two-bedroom homes is now at $1 and $169 respectively.
According to the agency, the increase in prices for detached units in Toronto will continue over the next 12 months, with prices expected to continue to climb.
Rent increases are expected in Toronto because of strong demand and strong supply, the office said.
When the average rental price of an apartment in Toronto increased by more $5,000 per month in 2019 compared to 2019, there were 3,000 units available in Toronto, BMO said.
The same was true for condos.