Toronto GTA February Rent Report 2022

GTA Average Rents Up 11.5% Year Over Year

The figure below presents the average rent and the month-over-month change in average rent for all property types in the GTA via TorontoRentals.com listings over the past three years.

The average rent in January 2022 was $2,200 per month, which represents an annual increase of 11.5% over the January 2021 average of $1,972 per month and a monthly increase of 2.4%. The average rent has increased month over month for nine out of the last 10 months, signaling that the rental market is quickly recovering from the pandemic-induced declines. The December dip was likely a seasonal decline and not related to Omicron fears. Pre-pandemic in December 2019, rents declined by 2% monthly in the GTA. 

Average Rent by Property Type

The figure below presents the average rent, the annual change in average rent, and average rent per-square-foot for single-family homes, condominium apartments, and rental apartments in the GTA between January 2021 and January 2022.

The average rent for a single-family home in January 2022 was $2,961 per month, which represents an annual increase of 23% over the January 2021 average of $2,404 per month. The average rent per-square-foot in January 2022 was $1.71, which was lower than one year ago.

The average rent for a condo apartment in January 2022 was $2,483 per month, representing an annual increase of 21% over the January 2021 average of $2,050 per month. The average rent per-square-foot in January 2022 for condo apartments was $3.43, an annual jump of 15.1%.

The average rent for rental apartments in January 2022 was $2,020 per month, which was up 7% annually compared to the January 2021 average of $1,896 per month. The average rent per-square-foot in January 2022 for rental apartments was $2.94.

Average Rent by Bedroom Type

The figure below presents the average rent, the annual change in average rent, and the average rent per-square-foot for all property types in the GTA by bedroom type and quarter. Q1-2022 is January only.

Studio units had an average rental rate of $1,547 per month in Q1-2022, representing an annual increase of 5.0%. Studio units maintained an average rent per-square-foot of $3.82 quarter to quarter, but is up annually from $3.55 in Q1-2021. 

One-bedroom units had an average rental rate of $1,879 per month in Q1-2022, an annual increase of 6.9% over the Q1-2021 average of $1,757 per month. One-bedroom units had an average rent per-square-foot of $3.07. At the end of the first quarter last year, rents were down 16.5% annually.

Two-bedroom units had an average rental rate of $2,429 per month in Q1-2022, which represents an annual increase of 10.6%. Two-bedroom units had an average rent per-square-foot of $2.75, up from $2,55 in Q1-2021.

Three-bedroom units had an average rental rate of $2,898 per month in Q1-2022, representing an annual increase of 10.3% over the Q1-2021 average of $2,627 per month. The average rent per-square-foot for three-bedroom units in Q1-2022 was $2.33.

Four-bedroom units maintained an average rental rate of $3,196 per month in Q1-2022, representing an annual increase of 1.3% over the Q1-2021 average of $3,154 per month. The average rent per-square-foot for four-bedroom units in Q1-2022 was $1.68, virtually unchanged from one year earlier.

Average Rent by Rounded Unit Size

The figure below presents the average rent for both condo and rental apartments by rounded-unit size (suites from 450 square feet to 1,549 square feet) in January 2021 and January 2022.

Units in the 1,300-square-foot range experienced the highest annual increase at 32%, moving from $2,672 per month in January 2021 to $3,538 per month in January 2022.

The unit size with the largest sample size is 600 square feet, and rents in this category fell by almost 19% annually in January 2021 to $1,802 per month, bouncing back in January 2022 to $1,985 per month on average, a 10% annual increase. 

 

Average Rent for Condo Apartments by Municipality

The figure below presents the average rent and the average rent per-square-foot for condo apartments only in select GTA municipalities between January 2021 and January 2022 via TorontoRentals.com listings.

All five of the select municipalities have experienced annual increases in both average monthly rental rate as well as average rent per-square-foot. 

Mississauga experienced the largest annual increases in average rent, increasing 31% moving from $2,089 per month in January 2021 to $2,736 per month in January 2022. 

In terms of average rent per-square-foot, Toronto experienced the largest year-over-year increase at 17.6%, moving from $3.12 per square foot in January 2021 to $3.67 per square foot in January 2022.

 

Average Rent for Rental Apartments by Municipality

The figure below presents the average rent and the annual change in average rent for rental apartments in select GTA municipalities in January 2021 and January 2022.

Toronto had the highest average monthly rental rate for rental apartments in January 2022 at $2,184 per month. The year-over-year change in monthly rental rates was 12.8%, following a hefty decline of 17.4% in the same month last year.

Oakville rents are up 11% annually to $2,100 per month, following a 23% year-over-year fall in January 2021. 

Oshawa rents declined year over year to $1,738 per month. Part of the decline was due to a number of more expensive rentals hitting the market at this time last year, but those units are now leased, and the composition of units for lease can be described as less luxurious.  

Average Rent by Postal Code

The figure below presents the average monthly rental rate for all property types in Toronto by postal code in January 2022.

Many of the postal codes with a higher average monthly rental rate (red) tended to be closer to the downtown core, while postal codes with a lower average monthly rental rates (green) tended to be in more suburban areas.

M5G is the postal code with the highest average monthly rental rate in Toronto at $2,853 per month, while M5E also posted a relatively high average monthly rental rate of $2,776 per month.

M6M is one of the postal codes with a lower average monthly rental rate at $1,454 per month, along with M6E at $1,550 per month.

Average Rent by Municipality

The figure below presents the average rent and the year-over-year change in average rent by municipality and former municipality for select areas in the GTA in January 2022.

To no surprise, Toronto stands out as the municipality that had the highest average rent in January 2022 at $2,444 per month – an annual increase of 17.7%. Richmond Hill, Vaughan, and Etobicoke also had relatively high average monthly rental rates at $2,246 per month, $2,225 per month, and $2,220 per month respectively. 

East York had the lowest average monthly rental rate at $1,917 per month, representing an annual increase of 4.5%. Scarborough also had a relatively lower average monthly rental rate at $1,926 per month, experiencing an annual increase of 2.7%. 

 

Average Rent by Project

The figure below presents the average rent and the annual change in average rent at select condo projects in Toronto in January 2022 (projects with five or more listings in both January 2022 and January 2021).

Out of the selected projects, No. 1 Yorkville experienced the highest year-over-year change in average rent at 38.3%, increasing to $3,048 per month in January 2022.

Harbour Plaza – East Tower also experienced a significant annual increase of 37.7%, moving to $2,764 per month in January 2022.

Playground Condos at Garrison Point saw their average rents rise to $2,717 per month, an annual increase of 36.1%. 

 

Conclusion

Rents in the GTA continued their upward trend in January as the economy opens back up following the Omicron scare. Average rents across all property types are on the way up, along with average rents across all bedroom types. Two-bedroom units and three-bedroom units both experienced significant annual increases of over 10% year over year. Despite some employers calling their employees back to the office, the desire for larger properties, which took off in the months following the start of the pandemic in 2020, continues in 2022. 

As the world returns to normal, it will be interesting to see whether the pandemic-induced need for larger unit sizes continues. Whether tenants begin to move back to the downtown core to return to the office remains a large factor that will affect rental rates in Toronto compared to more suburban areas. The rent premium between downtown and the rest of the GTA has begun to widen, but remains well below the gap seen pre-pandemic. 

Condo units in Mississauga have outpaced the other popular municipalities in terms of its annual change in average rent, while Toronto has experienced the largest annual increase in average rent per-square-foot. There is a clear return of demand to the big cities in the GTA. 

Ben is the President and owner of Bullpen Research & Consulting Inc. With over 15 years of real estate research experience in both the United States and Canada. As Editor & Executive Vice President of a Toronto-based condominium apartment data tracking firm, Ben established himself as one of the GTA’s top housing analysts, and an in-demand media commentator.

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